A temporary 15 percent cap on fees charged by third-party, app-based food delivery businesses like DoorDash, Uber Eats and GrubHub was unanimously approved this week by the Lafayette City Council, whose members said local restaurants need that support during the COVID-19 pandemic.
The cap, which expires when the county COVID-19 health emergency is declared over, takes effect Nov. 16.
In addition to a 15 percent cap on delivery fees, the ordinance imposes a 10 percent vendor fee cap on pickup orders.
Third-party delivery providers have been charging restaurants between 10 and 30 percent of the purchase price per order during the pandemic.
During the pandemic, restaurants in Lafayette and elsewhere have survived on takeout orders and outdoor dining, and to a lesser extent, indoor dining as COVID-19-related restrictions have eased.
But as the weather grows colder and potentially more rainy, outdoor eating will assume a smaller role in the restaurant business. Combined with an expected drop in indoor dining capacity, with Contra Costa and other
Bay Area counties moving into more restrictive rules as COVID-19 cases and hospitalizations rise, local restaurant operators say takeout and delivery orders will continue to be their lifeblood.
“These add-on fees could have a significant impact on the restaurant’s profitability and viability,” a city report says.
Lafayette City Council members Cam Burks and Steven Bliss noted that a delivery fee cap is a form of government interference in the free market. But both said the urgency ordinance was otherwise reasonable, as well.
Neighboring Walnut Creek passed a similar 15 percent cap on Oct. 6; other cities that have taken similar measures include Berkeley, San Francisco, South San Francisco, San Leandro and Fremont.
wow
what just happened
did a city actually …i mean actually help businesses
wow the concept has been gone for years
the establishment of the state has only wanted to tear down business
slam the owners and tax them to death
huge clap and cheer for a city to actually care about american businesses
and their owners …..woah is there a changing tide coming
….uhhh oh back on lock down
Check out Defenition # 2
Restraint is illegal.
But, since when did lawmakers care about the law?
restraint of trade
Legal Definition of restraint of trade
1: an act, fact, or means of curbing the free flow of commerce or trade
covenant not to compete with an employer after leaving is in restraint of trade and must be reasonable to be enforced
2: an attempt or intent to eliminate or stifle competition, to effect a monopoly, to maintain prices artificially, or otherwise to hamper or obstruct the course of trade and commerce as it would be if left to the control of natural and economic forces
the Sherman Antitrust Act declared every contract, combination, and conspiracy in restraint of trade to be illegal
also : the means (as a contract or combination) employed in such an endeavor
— see also HORIZONTAL RESTRAINT, PER SE RULE sense 2, RULE OF REASON, VERTICAL RESTRAINT, SHERMAN ANTITRUST ACT
Or we can, you know, open up and let the free market take care of itself instead of regulating things to death?
Or the restaurants can hire their own delivery people? They can choose to not use delivery services, correct?
I understand the fees are high, but is hiring their own drivers higher cost?
I haven’t done the research, maybe someone who has can sum up the difference.
Go directly to the restaurant and pick it up or use their delivery service, don’t support those companies.