San Francisco is set to loosen its delivery fee cap – Restaurant Business Online

TechnologyAn amendment will allow providers to charge restaurants more for additional services and will end a legal battle between delivery companies and the city.

San Francisco is set to loosen its 15% cap on third-party delivery commissions, a move that would end a lawsuit between DoorDash and Grubhub and the city.

The city’s Board of Supervisors on Tuesday unanimously approved an amendment that will allow delivery companies to charge restaurants more for additional services like marketing, advertising and search engine optimization. Restaurants can opt in to the add-ons.

The fee for delivery providers’ core services—delivery and a listing on their marketplace—will continue to be capped at 15% of the order total.

The amendment will go to a final vote on Tuesday, and it is expected to pass without changes. It will go into effect Jan. 31, 2023.

Last June, San Francisco became the first city in the nation to permanently limit how much delivery providers charge restaurants. It capped…

Read Full Story: https://restaurantbusinessonline.com/technology/san-francisco-set-loosen-its-delivery-fee-cap

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