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City Committee Considers Capping Fees Food Delivery Services Charge Local Eateries

New regulations would put Pasadena in line with similar caps in Los Angeles and Glendale

Published on Thursday, July 9, 2020 | 4:44 am
 

Following in the footsteps of cities like Los Angeles, Santa Monica, Santa Cruz, and Glendale, Pasadena’s  Economic Development and Technology Committee (Ed-Tech) on Thursday will consider a recommendation to the City Council to limit fees delivery services may charge Pasadena restaurants.

Other cities throughout California have passed temporary ordinances limiting delivery fees to 15 percent and regulating other fees those services charge restaurants.

According to the Ed-Tech staff report, third-party delivery services such as GrubHub, Postdates, DoorDash, and UberEats are charging restaurants commission fees that can reach up to 30 percent an order, largely reducing or even eliminating any profit for the restaurant.

Small businesses rely on these third party delivery services because of the pandemic, but almost no bargaining power, said the report.

Among the recommendations the committee will consider are mandating a percentage cap on third party delivery fees, a cap on other service or processing fees, a protected gratuity for third party delivery workers, and/or offering drivers the entire gratuity, if paid directly by the customer.

The committee also recommended that the cap be temporary. Charges would return to normal after the pandemic emergency ends,  or when dining in resumes in Pasadena restaurants.

The Economic Development and Technology Committee will meet online Thursday at 2 p.m. The meeting is available at www.Pasadenamedia.com.

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