L.A. moves to extend food delivery fee cap, penalize companies that don't comply

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L.A. plans to keep the 15% cap on fees charged by Uber Eats, Postmates and other delivery services in place until restaurants can fully open.

Los Angeles officials have moved forward with plans to extend an emergency ordinance limiting fees that third-party delivery services such as Postmates, Grubhub and UberEats are allowed to charge restaurants during the COVID-19 crisis.on May 20 and caps delivery fees at 15% of the order price and all other fees at 5%, was designed to end 90 days after L.A. lifted its ban on-premise dining, which meant the cap would expire next week on Aug. 31.

“Our emergency order has helped level the playing field [for restaurants], and this needs to continue,” Councilman Mitch O’Farrell said.by chief legislative analyst Sharon Tso, which found that nearly 95% of restaurants surveyed would like the ordinance to continue, with 72% saying the cap had been beneficial during the COVID-19 pandemic.

 

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