CLEVELAND, Ohio — A proposal is before Cleveland City Council that would limit the commission third party delivery services can charge restaurants during the pandemic.
Ward 13 Councilman and City Council President, Kevin Kelley introduced the emergency ordinance which would cap the fee to “15% of the purchase price on delivery or pick-up orders while restaurants are unable to provide unrestricted dine-in service.”
The legislation will also “prohibit a reduction in compensation for delivery drivers as a result of this limit.” The percentage restaurants pay now could be as high as 30 percent says Kelley.
"Because the restaurant industry is so particularly hard hit, we have to do everything that we can to support the industry," he explains.
WKYC’s Tiffany Tarpley reached out to two delivery apps and only one responded.
“DoorDash has always supported restaurants. Pricing regulations could cause us to increase costs for customers, which could lead to fewer orders for local restaurants and fewer earning opportunities for Dashers. We are eager to engage with policymakers on solutions that better support restaurants, customers, and Dashers," the delivery service said in a statement.
For more information on DoorDash and its fee, you can read this blog post.
Council is expected to vote on the legislation next week. If it passes and the mayor approves, it could go into effect immediately.