San Francisco will permanently cap food delivery fees for DoorDash, Grubhub and other apps
The San Francisco Board of Supervisors voted Wednesday to create a permanent delivery fee cap on third-party delivery companies like DoorDash and GrubHub.
The city’s Board of Supervisors voted unanimously to approve a resolution that permanently caps food delivery fee commissions charged by companies like DoorDash and Grubhub at 15% per order. The legislation only pertains to delivery fees — a provision that has already been in place since April 2020 — but does not cover other costs like marketing fees.
Amendments that are still to be introduced may allow restaurants and delivery companies to work out separate agreements on marketing fees, meaning restaurants that want to be featured more prominently on such apps could do so. The legislation also includes a provision to cap credit card processing fees at 3% and prevents third party delivery companies from forcing restaurants to opt into marketing agreements. Those measures will be be voted on at a later date.
For now, the legislation simply makes permanent the emergency provision, which was set to expire Aug. 15 — 60 days after S.F. restaurants were able to fully reopen. Laurie Thomas, the executive director of the Golden Gate Restaurant Association, a trade group that represents thousands of restaurants in the city, hailed the decision.
