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FreshDirect quietly slips in extra fee to customers in NYC congestion pricing zone

Eagle-eyed Fresh Direct customers who live in Manhattan's congestion toll zone may have noticed an additional fee on their bill — as the online grocer offsets the heinous toll payment. The Post found out after secretly adding an additional fee to the company.

Fresh Direct, the Bronx-based company with colorful trucks, imposed an extra 50 cents on all deliveries below 60th Street after a controversial new tax went into effect Sunday.

The company did not notify customers of the additional charges before they were imposed, but acknowledged the charges when contacted by the Post.

FreshDirect charges customers 50 cents to cover the cost of congestion pricing, the company said. christopher sadowski
Neighborhoods closest to the 60th Street toll plaza are expected to experience nightmarish traffic congestion.

“While we have absorbed most of the operational costs associated with implementing congestion pricing, we will now add a 'congestion pricing' fee of $0.50 to residential deliveries within affected areas,” a spokesperson said in a statement. Ta.

“This small fee allows us to adapt to the evolving landscape of our service area while continuing to provide the quality and convenience our customers have come to expect from FreshDirect.”

FreshDirect does not flag extra charges on the checkout page. The extra 50 cents will be added to the “fuel surcharge” line item at checkout, which now also includes a “congestion charge,” the spokesperson said.

FreshDirect executives estimated that the company delivers 100,000 grocery boxes to customers in New York and New Jersey each week. According to a 2022 Bronx Times article:.

Burt Flickinger, industry expert and managing director of Strategic Research Group, estimates that FreshDirect currently has 50,000 customers in Manhattan, about 20,000 of whom are in congestion pricing zones. Masu.

The company did not comment on the size of its customer base.

If a delivery truck passes below 60th Street during peak hours, it will have to pay $14.40.

FreshDirect is not alone in its efforts to introduce congestion pricing. Other companies reported by the newspaper include CompuVoip, a phone and data service company that has contracts with the city, as well as catering companies and funeral homes.

By contrast, food delivery company Baldor, which makes deliveries to restaurants and other commercial businesses, told the Post it has no plans to impose additional fees on customers.

Bronx-based FreshDirect loads large trucks to reduce the number of trips smaller vans and cars make below 60th Street. christopher sadowski

“Our plan is to offset costs internally and optimize truck routes,” said Seth Gottlieb, senior vice president of logistics. “We remain above 60th Street and are exploring opportunities for customers to receive overnight delivery.”

Baldor estimates that congestion pricing would cost up to $500,000 a year under the current plan.

The congestion charge went into effect at midnight on January 6th. michael nagle

FreshDirect is trying to cut costs by loading more orders onto larger trucks and reducing the number of trips its $9 vans and cars make below 60th Street, a spokeswoman said.

FreshDirect was acquired by Türkiye-based Getir in 2023. Getir is a fast-track grocery delivery service that is in trouble.

As The Post reported, the parent company is facing numerous lawsuits from New York City landlords seeking back rent.

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