Seattle caps third-party delivery fees at 15%


Something else I'm into Jenny Durkan mer Seattle on Friday this happened over the weekend but it it affects anybody who either orders food from restaurants through a third party delivery service anyone who drives for third party delivery service anybody who owns a restaurant who which uses a third party delivery service talk about like uber eats and and GrubHub and doordash those those types of places Hey Jenny Durkan announced an emergency order that caps these delivery services commission fees at fifteen percent in till we can get back into restaurants in there no more restrictions and we can do as as we used to do this I I don't know if a lot of people realize this this is something that came to my attention early on in the stay at home stuff but I haven't heard a ton about it where you know these these service if you called a restaurant directly and you order from them directly if they do in house delivery if they have their own people if they have the the means in the where with all the staff to deliver food themselves that all that money goes to them but if you go through an uber eats are adored ash those companies take a percentage of what you spend at that restaurant as a commission fee right in other words so the price you're paying for it the baby may appear to be the same but the restaurant is get there taking a cut off with the restaurant normally would get right and I have a couple of friends who've gone back it will in places have gone back and forth on prior to this on embracing because your if your margins are close it works I mean the way one explained it was well if we're doing if we look at it as a marketing budget yeah you know then it's good to have more people try the food and perhaps that will bring in more customers but from a business standpoint it doesn't it didn't really pencil out they did it but I think in the nice thing is though it's just like being an uber driver you can click off on uber eats for example and say you know we're not participating today huh we're not participating this week you're not obligated to be out there but you are obligated to give them a cut if somebody does order through the app and you pick up is there any drivers out there ninety ninety seven three I'd love to hear from you on the text line but yeah I but you sure it's it's good marketing it's it's good to have that that's questionable but have what if that's what it is that a marketing budget at this point in time you know and what that was my point my point more that they were trying to find a way to justify doing it because it wasn't penciling out very well otherwise right and sometimes those fees were you know thirty percent I mean that's that's a large slice of the pie as far as revenue goes for for those restaurants so so they have capped it the city of Seattle has capped those fees at fifteen percent again until everything sort of settles out we we don't have any more restricted dining rules and this is also good for drivers they get some protection here as part of the policy drivers have to get one hundred percent of tips which is always good tip well please and it's illegal for any of these third party companies the door dash it reads it's illegal for them to pay their drivers last to make up for the commission money that they're losing which is what was happening with Amazon and what's happening with other with other companies that we're trying to sort of build in the idea of the tip the driver was getting and reduce the pay accordingly yeah which I think is actually I think that's actually a terrific idea I don't like the idea of someone siphoning away a driver's tips but I wouldn't I do wonder why do it on commission I mean a forty dollar experiencing you let's just say a hundred dollar fancy meal is the same amount of gas and time as a thirty dollar non fancy meal he could be the same number of people but one because its commission based there's a percentage cut right you know it's not any harder to deliver and so he is maybe isn't even any farther so why not just had a delivery fee based on distance and make it a flat fee so someone knows yeah here's the cost of the food the restaurant gets that here's a we're gonna charge you to pick it up right get that's right and then here is what you can ask for a tip should you should you choose to and the driver get that and make it I think people I think that part of the reason to do this is to some degree to mask with the real cost is everyone has had that yeah I ordered food online that they kept in like what how did this turn into a seventy dollar mail right you know thirty thirty five dollars for the food five dollars for the delivery fee the final bill is seventy eight ninety nine it's just out of that meeting doesn't make a whole

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