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L.A. may cap delivery app fees at 15% in an effort to help struggling restaurant industry

Los Angeles restaurant owners, who have been vocal about high service fees charged by food delivery apps, could soon pay significantly less if a new city ordinance is approved. Restaurants currently pay as much as 30% in fees to third-party delivery apps such as Postmates, Grubhub and UberEats. Under the proposed ordinance, introduced in a […]

Los Angeles restaurant owners, who have been vocal about high service fees charged by food delivery apps, could soon pay significantly less if a new city ordinance is approved.

Restaurants currently pay as much as 30% in fees to third-party delivery apps such as Postmates, Grubhub and UberEats.

Under the proposed ordinance, introduced in a motion request from Los Angeles City Councilman Mitch O’Farrell, the apps could charge no more than 15% of the purchase price per order in fees during the COVID-19 pandemic.

“We want to do all we can to help improve their [restaurants’] chances of survival, and the worst thing we could do is not lean in when we see these cases that look a lot like price gouging,” O’Farrell said in an interview Monday. “We hear from our restaurants in the district a lot, and when we hear about this price gouging, it’s just unconscionable.”

Read the full story on LATimes.com.