Seattle permanently imposes a 15% cap on food delivery fees

The Seattle City Council has voted to permanently implement a 15% cap on delivery fees that companies — including DoorDash, Grubhub and Uber Eats — use to charge local restaurants.

The cap has been in place since April 2020, when it was implemented as part of an emergency order to manage the financial hardship small businesses are facing due to shutdown orders during the pandemic.

In March 2020, 38% of US consumers ordered food through a food delivery app. A year later, the number jumped nearly 10 points as 47% of Americans had used a food delivery app.

Food delivery is an integral part of the food industry, as 53% of respondents respondents — and 64% of millennial respondents — said food delivery and takeout are “essential to their way of life,” according to QSR.

The new legislation was sponsored by Council members Dan Strauss (District 6) and Alex Pedersen (District 4).

This small business legislation capping the fees charged by delivery companies is critical to supporting Seattle’s diverse restaurants,” Pederson said. “Over the past two years, the 15% cap has proven to be reasonable and vital in supporting Seattle’s diverse restaurants that have struggled to survive in our city. Because Seattle’s pandemic emergency ordinance may soon be ending, this legislation saves our local restaurants from a financial cliff.

Governor Jay Inslee announced last week that he would rescind 12 executive orders under his COVID-19 emergency authority, saying they are no longer needed in response to the pandemic as the city turns to post practices. -pandemics.

Inslee rescinds 12 emergency orders related to COVID-19

Hazard pay for grocery store workers also ended after a 5-2 decision by the Seattle City Council yesterday, citing that hazard pay was never intended to be long-term or a way to fight back. against inflation. It has always been tied to COVID-19, not consumer prices.

“As everyone knows, restaurants have been the hardest hit throughout the pandemic,” said Steve Hooper, president of the Seattle Restaurant Alliance. “Today’s vote making the 15% commission cap permanent ensures the best customer experience by keeping delivery a viable option as restaurants navigate post-pandemic challenges and gives restaurants the assistance and predictability they need. they need it so much without additional financial hardship as they seek to recover and prosper.

Without this limitation, some delivery companies would have charged catering costs of up to 30% before the pandemic.

As the legislation is passed by the full city council, it will go to the mayor for his signature. If signed, it will come into effect 30 days later.