Seattle Issues Emergency Order to Cap Delivery App Fees for Restaurants at 15 Percent
On Friday afternoon, Seattle Mayor Jenny Durkan, along with city council president M. Lorena González and council member Lisa Herbold, announced an emergency order intended to help restaurants during the COVID-19 crisis: third-party delivery apps can now only charge restaurants up to a 15 percent fee.
The order also requires that 100 percent of tips from those apps go to the drivers, and it includes provisions to make clear that it is illegal for a third-party platform to reduce driver compensation rates as a result of this order going into effect.
“Unfortunately, some third-party delivery services are charging exorbitant commission fees, which exacerbates the financial hardship many restaurants are already experiencing,” said Mayor Durkan through a statement provided to Eater Seattle. “This commission cap will be critical to ensuring that delivery and takeout remain viable options and don’t cause increased financial hardship.”
“This will provide immediate relief for restaurants,” says Dan Austin, the owner of West Seattle Italian restaurant Peel & Press and a co-chair of the West Seattle Government Advocacy Committee. “It’s more money to help cover payroll.”
https://www.msn.com/en-us/foodanddrink/foodnews/seattle-issues-emergency-order-to-cap-delivery-app-fees-for-restaurants-at-15-percent/ar-BB139Vz2?ocid=hplocalnews
