The SF Board of Supervisors voted unanimously Tuesday to permanently cap the per-order fees that delivery apps charge to restaurants at 15 percent —

San Francisco Permanently Caps Delivery App Fees For Restaurants at 15%

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2021-06-23 18:00:10

The SF Board of Supervisors voted unanimously Tuesday to permanently cap the per-order fees that delivery apps charge to restaurants at 15 percent — extending what had been a temporary cap put in place during the early months of the pandemic.

Restaurants in San Francisco had been complaining since before the pandemic began that delivery apps like GrubHub, DoorDash, and Postmates were making money on both ends, charging consumers extra fees on their orders and taking commissions on the restaurant's side that ranged between 15 and 30 percent. With restaurant profit margins typically low to begin with, many complained that these app startups were gouging them and eating up what little money they might be making on each order, all in the name of convenience.

San Francisco became one of the first U.S. cities to set a cap on what the apps could charge restaurants when Mayor London Breed passed an emergency order last April capping the commission fees at 15 percent.

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