Los Angeles is pushing forward with plans to limit how much delivery services such as Postmates, Grubhub and UberEats can charge restaurants, capping delivery fees at 15% of the purchase price for orders during the COVID-19 crisis.
The City Council voted 14-0 Wednesday to ask city attorneys to draft such a law, following other cities including San Francisco and New York City. Restaurants currently pay as much as 30% in fees to third-party delivery apps, which Councilman Mitch O’Farrell denounced as exorbitant.
O’Farrell said that, during the pandemic, restaurants were relying much more heavily on delivery sales and had become “completely at the mercy of these third-party delivery apps.”
“If we keep going down this road, restaurants will be forced to raise their prices and risk losing customers,” the councilman said. “Why should restaurants, and their customers, be put in a position to subsidize delivery app companies? We need to level the playing field.”
Read the full story on LATimes.com.