Denver, Colorado 2021-01-25 20:11:37 –
Companies that deliver food in Denver, such as Grubhub, DoorDash, and Postmates, have to spend a few more months at a 15% rate that can be charged to restaurants.
On Monday night, the Denver City Council unanimously extended the 15% cap on these fees until mid-June. The price limit was initially set to pass in September and expire early next month.
DoorDash has launched a $ 2 “Denver fee” to recoup the revenue lost due to the cap. But broadly, price caps made a difference for local restaurants suffering from a pandemic, said Aaron Nelsen, general manager of Brothers BBQ. Previously, larger charges were added immediately.
“If you only have 10 to 20 (delivery) orders a week, it was a kind of gouging,” he said.
Locally owned chains can more easily partner with shipping companies because of the lower fees, Nelsen said. The same applies to small restaurants. Small restaurants often cannot afford their own delivery driver.
Similar caps are imposed on shipping companies such as San Francisco, Seattle, and New York. And company representatives are against the measure.
“Price restrictions can increase customer costs, reduce orders for local restaurants, and reduce revenue opportunities for Dashers,” a DoorDash spokeswoman said in an email to The Denver Post. I am. “We want to work with policy makers on solutions that better support restaurants, customers and Dashers.”
City council member Chris Hinds said DoorDash has proposed raising the cap to 20%, but tends to lower it to 10%. In addition, other changes take precedence.
“My personal priority is to get rid of that ridiculous $ 2 Denver fee,” Hinds said.
Nelsen said he favors making it permanent rather than raising it by 15%. Even if you raise it to 20%, the profit of the restaurant will decrease.
Denver City Council extends fee cap for food delivery companies like DoorDash and Grubhub Source link Denver City Council extends fee cap for food delivery companies like DoorDash and Grubhub