Contentious Delivery Fee Cap Approved By City Council

After several close calls and failed attempts, the Burbank City Council narrowly passed a temporary ordinance limiting fees third-party delivery platforms can charge restaurants.
The ordinance, which council members approved with a 3-2 vote on Tuesday, will prevent services such as Grubhub, Postmates and Uber Eats from charging a vendor more than 20% of the online purchase price of an order. City staff members said those fees have reportedly been as high as 40%.
The initiative will go into effect at the end of April and will expire when indoor and outdoor dining return to full capacity, unless the City Council extends or terminates it before then. Food delivery platforms will also be barred from reducing drivers’ pay or tips because of the ordinance, which additionally requires services to provide customers with an itemized receipt.
Restaurants who allege that a service has violated the ordinance can sue it in small-claims court.

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City Council Members Split Over Delivery Fee Cap

A potential ordinance that would limit the fees third-party delivery services can charge restaurants narrowly survived being voted down after a heated discussion between City Council members.
The fee cap, which would allow Grubhub, DoorDash and similar apps to charge no more than 20% of orders in fees, faced unexpected opposition on Tuesday after Mayor Bob Frutos voted against a motion to introduce the ordinance for future consideration. Frutos previously voted in favor of an unsuccessful attempt to approve a similar emergency ordinance, but this week joined Councilman Sharon Springer in opposing it.

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