SEATTLE — A new ordinance that would limit the fees food delivery platforms can charge restaurants is set to be introduced at a Seattle City Council committee meeting on Wednesday.
If passed, the legislation would ensure that the cost of delivering food must not exceed 15% of the price of a customer’s order.
Food delivery platforms, such as Uber Eats and DoorDash, can charge restaurants upwards of 30% for delivery services.
Deliveries account for 21-30% of restaurant sales, according to a presentation Seattle City Council central staff.
Many restaurants struggling to stay in business are increasingly reliant on food delivery, but have limited bargaining power to negotiate the fees charged by delivery platforms.
“The net profit margin for many restaurants is around ten percent and can be as low as three to five percent for full-service restaurants, leaving little room for the fees that food delivery platforms charge for their services. “, said the draft ordinance partly bed.
A cap on delivery service charges has been in place in the city since April 2020, when council amended an emergency civil ordinance passed by then-Mayor Jenny Durkan during the COVID-19 pandemic. .
A similar cap was in place statewide from November 2020 to June 2021, when Governor Jay Inslee rescinded a proclamation relating to indoor dining capabilities.
Minneapolis, New York, Philadelphia and San Francisco have already passed laws that permanently cap delivery charges.
If the ordinance passes City Council, it will then head to Mayor Bruce Harrell for his signature.
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