MYNORTHWEST NEWS

Seattle permanently issues 15% cap on food-delivery fees

Aug 3, 2022, 2:51 PM

(Photo by Michael M. Santiago/Getty Images)...

(Photo by Michael M. Santiago/Getty Images)

(Photo by Michael M. Santiago/Getty Images)

The Seattle City Council voted to permanently implement a 15% cap on delivery fees that companies — including DoorDash, Grubhub, and Uber Eats — use to charge local restaurants.

The cap has been in place since April 2020 when it was implemented as part of an emergency order to manage the financial hardship small businesses faced under shutdown orders during the pandemic.

As of March 2020, 38% of American consumers had ordered food through a food delivery app. One year later, the number jumped nearly 10 points as 47% of Americans had used a food delivery app.

Food delivery is an integral part of the food industry as 53% of survey respondents — and 64% of millennial respondents — said that food delivery and takeout are “essential to the way they live,” according to QSR.

 The new legislation was sponsored by Councilmembers Dan Strauss (District 6) and Alex Pedersen (District 4).

This small business legislation capping fees charged by delivery companies is vital to support Seattle’s diverse restaurants,” Pederson said. “Over the past two years, the 15% cap has proven to be reasonable as well as vital for supporting Seattle’s diverse restaurants that have struggled mightily to survive in our city. Because Seattle’s Emergency Order for the pandemic could end soon, this legislation saves our local restaurants from a financial cliff.”

Gov. Jay Inslee announced last week that he will rescind 12 decrees under his COVID-19 emergency authority, saying they are no longer needed in response to the pandemic as the city pivots to post-pandemic practices.

Inslee to rescind 12 emergency decrees related to COVID-19

Hazard pay for grocery workers also ended after a 5-2 decision from Seattle City Council yesterday, citing that hazard pay was never intended to be long-term or a way to combat inflation. It was always tied to COVID-19, not consumer prices.

“As everyone knows, restaurants were the hardest hit throughout the pandemic,” said Steve Hooper, President of the Seattle Restaurant Alliance. “Today’s vote making the 15% commission cap permanent ensures the best customer experience by keeping delivery a viable option as restaurants navigate post-pandemic challenges and gives restaurants much-needed assistance and predictability without additional financial hardship as they seek to recover and thrive.”

Without the limitation, some delivery companies reportedly charged restaurants fees as high as 30% prior to the pandemic.

With the legislation passing by the full city council, it will go to the mayor for his signature. If signed, it will go into effect 30 days afterward.

MyNorthwest News

Juanita Beach Kirkland...

Kathy McCormack and Nick Perry, The Associated Press

‘Tis the season for swimming and bacteria alerts in lakes, rivers

With summer about to start, many people flocking to their favorite swimming holes may also want to read up on bacteria warnings.

3 hours ago

Image: A Bellingham Police Department vehicle is seen on a city street in 2015....

Julia Dallas

Bellingham sixth grader allegedly punched by man in racist attack

A Bellingham 6th-grader was allegedly attacked by a man who was spewing racist comments during a school field trip on Wednesday.

4 hours ago

Photo: Starting this fall, students at Seattle's Hamilton International Middle School will have to ...

Julia Dallas

Seattle school to say goodbye to cell phones in the fall

Starting this fall, students at Seattle's Hamilton International Middle School will have to lock up their cell phones during school hours.

7 hours ago

Image: A dose of the measles, mumps and rubella vaccine is displayed at the Neighborcare Health cli...

Sam Campbell and Steve Coogan

Measles case reported at West Seattle clinic; know the symptoms

A child, now confirmed to have measles, went to the Franciscan Health Urgent Care clinic in West Seattle, officials said in a release Friday.

8 hours ago

Image: The Supreme Court building can be seen from a distance on Thursday, June 13, 2024, in Washin...

Associated Press

Supreme Court strikes down Trump-era ban on bump stocks, gun accessory

The Supreme Court has struck down a ban on bump stocks, an accessory that allows semi-automatic weapons to fire rapidly like machine guns.

14 hours ago

Image: A multi-vehicle collision including a semitruck on Interstate 5 in Fife slowed down traffic ...

Steve Coogan

1 killed in multi-vehicle crash on I-5 south in Fife; morning traffic affected

The Washington State Patrol is on the scene of a deadly multi-vehicle crash that occurred on I-5 south in Pierce County early Friday.

15 hours ago

Seattle permanently issues 15% cap on food-delivery fees