marketplace - dominating delivery services like Grubhub and DoorDash are image unprecedented demand amid covid-19 stay - at - home orders . But these apps represent athreat to the livelihoodsof local businesses even prior to the pandemic , and now , cities are step in to curb the exorbitant delivery fee these apps have levied on restaurants struggling to stay afloat .
Portland ’s regulation is among one of the lower fee hood introduced by cities in reply to the pandemic . This is great news for restaurants inprecariouspositionsright now as the covid-19 crisis go on , a position that has not been made easier by hefty fees from third - company apps . But the move is almost sure enough going to piss off delivery ghouls that havepublicly opposedsimilar measures in other metropolis . DoorDash — which said it wasraising roughly $ 400 millionin a Series H funding around as of June — called Portland ’s ordinance a “ drastic regulatory overreach . ”
“ We ’re discomfited that , in the midst of this crisis and when food delivery is more essential than ever , Portland ’s City Council has go across a dramatic and arbitrary cap that will have the unintended consequence of reducing sales for local restaurants and earning opportunities for delivery workers , ” a DoorDash interpreter told Gizmodo in a statement by email . “ DoorDash does n’t just connect restaurants to client : we help the saving of each purchase order , and commission help us encompass a number of disbursal on behalf of restaurants — including paying Dashers who deliver the food . ”
Photo: ERIC BARADAT/AFP (Getty Images)
A spokesperson for Grubhub , meanwhile , told Gizmodo the company is “ rag by the want of transparency and cooperation from the urban center for not bring in manufacture voice in to begin with to work together on a root , ” arguing that “ any cap on fees represent an overstep by local official and would not defy a legal challenge . ”
Uber chuck also disapproved of the measure , with the company saying it may need to “ rethink ” its current concern model and adumbrate the move may touch on courier earnings .
“ By modulate the way we fund our operations , the metropolis will draw us to rethink how we do business — including boil down service region or increasing consumer - face up fees — which could result in slenderize revenue for eating house , fewer income opportunities for delivery people , and confine admission to food delivery for the world , ” a voice said by email .
Postmates did not immediately return a request for scuttlebutt .
Anemergency orderissued in April in San Francisco state that manner of speaking apps were required to cap livery fee to restaurants at 15 % , and similar measures have been taken in cities likeNew York , Los Angeles , andSeattle . Portland ’s regulation will remain in place for the continuance of its state of pinch and through a 90 - day period after it is pilfer .
“ Covid-19 has devastated Portland ’s restaurant industry , ” bicyclist say in a statement this hebdomad . “ Adding contumely to combat injury , I have hear from countless restaurant possessor that third - party delivery apps are turn a profit at the expense of the eating place , their employees , and especially driver . It ’s an obvious measure to limit legal transfer fees during a public wellness crisis , and I need to give thanks Commissioner Eudaly for partnering together on this . ”
sum input from Uber Eats .
doordashgig economyGrubhubPortlandPostmates
Daily Newsletter
Get the best tech , science , and civilization news in your inbox daily .
News from the future tense , delivered to your nowadays .
You May Also Like
