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San Diego Mayor caps fees delivery apps can charge restaurants

Benny Yun
Posted at 4:25 PM, Jan 25, 2021
and last updated 2021-01-25 19:26:35-05

SAN DIEGO (KGTV) — In an effort to help out San Diego restaurants operating under the strain of the pandemic, Mayor Todd Gloria announced he's capping fees that third-party delivery apps, like Grubhub and DoorDash, can charge local businesses.

Monday, Gloria signed an executive order to cap the fees at 15% for delivery and limit total fees at 18% that the delivery apps can charges businesses starting at midnight.

Previously, he claimed that the apps were charging commissions, fees, and service charges of 30% or more to restaurants already struggling during the pandemic.

"In order to protect San Diego businesses and their employees that have sacrificed so much during the pandemic, it is necessary to temporarily restrict the fees imposed by third-party food delivery companies," said Gloria. "Capping the per-order fees will ease the financial burden on struggling businesses in our community, will keep food delivery options accessible to consumers, and is an important step to protecting the livelihoods of our neighbors."

Mayor Gloria is also allowing storefront businesses to temporarily place curbside pickup signs in parking spaces immediately adjacent to their business to help make pickup operations more efficient.

Restaurants have only been allowed to operate outdoors or by offering takeout or delivery for much of the coronavirus pandemic. With stay-at-home orders, many residents have increasingly used food delivery apps to avoid dining out.

The order was signed after councilmembers last week requested the temporary fee cap.

"Restaurants are part of the fabric of our neighborhoods, and many are at risk of closure," Council President Pro Tem Whitburn said. "I applaud Mayor Gloria’s quick response to provide this relief, which will help save small businesses and local jobs. Today’s action shows what we can accomplish when we work together for our communities."