Los Angeles City Council voted unanimously on May 20 to draft an ordinance that will cap the commission third-party food delivery companies can charge restaurants at 15% during the COVID-19 emergency.
The effort was led by Councilman Mitch O’Farrell, 13th District, who is concerned about the costs delivery services are passing along to restaurants. O’Farrell cited the importance of the services provided by companies such as Grubhub, Uber Eats, DoorDash and Postmates, but said commissions can be as high as 30% and have a detrimental impact on restaurant profits. Capping the commission is particularly important during the COVID-19 public health emergency, with many restaurants and eateries struggling to survive.
Other cities have proposed similar measures. San Francisco’s Mayor London Breed has issued an order capping the commissions at 15% during the COVID-19 emergency.
For information, visit cd13.lacity.org.
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