Yahoo Finance’s Dani Romero reports the details and response to the lawsuit DoorDash and Grubhub have filed on San Francisco over the city’s permanent delivery fee cap.
- Delivery giants DoorDash and Grubhub are suing the city of San Francisco over delivery fee caps. The 15% cap, which was imposed soon after the pandemic began, have now become permanent. And you can bet that those delivery apps are fighting back. Yahoo Finance's Dani Romero here now with all the details. Dani?
DANI ROMERO: Yeah, so the city of Palm-- the city of San Francisco initiated this temporary policy to help restaurants during the pandemic, and the official fee cap was set to expire August 15th. Last month, during a board of supervisors meeting, they voted unanimously to make it a permanent change. So that means the city's cap prohibits all fees charged to restaurants by delivery companies can't exceed 15% of an order total. The app companies call the permanent price control unconstitutional, saying that without the fees, it would lead to fewer choices for restaurants, higher consumer prices, and could affect the services the companies offer in San Francisco.
- All right, so Dani, tell us what the response has been from some of those local restaurants, and from the city of San Francisco itself.