The Los Angeles City Council has voted to ask city attorneys to draft a law that caps delivery fees at 15 percent of the purchase price during the COVID-19 pandemic, reports the Los Angeles Times. According to Councilman Mitch O’Farrell, restaurants currently pay as much as 30 percent in fees to third-party delivery apps.
“If we keep going down this road, restaurants will be forced to raise their prices and risk losing customers,” O’Farrell said. “Why should restaurants, and their customers, be put in a position to subsidize delivery app companies? We need to level the playing field.”
Following the vote, Postmates said in a statement that “government price setting” threatened jobs and created “a false choice between local restaurants and the delivery network companies that support them.”
City lawyers will now draft the law, which will then go back in front of the council for final approval before going into effect. Full Story
Related: Sources: Uber May Acquire Grubhub; NYC Council Approves Bill to Cap Third-Party Delivery Fees.
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