The Oneida Daily Dispatch (Oneida, NY)
Oneida County sets limit on third-party food delivery service fees
UTICA, N.Y. » Third-party food delivery services, like Doordash, Grubhub, and others, now face a cap on the fees they can charge restaurants in Oneida County.
On Feb. 2, 2021, County Executive Anthony Picente signed an executive order capping the fees.
The COVID-19 pandemic and the subsequent shutdown/sharp decrease of indoor dining is why these restrictions are needed, the executive order states. Right now, many businesses “rely on take out and thirdparty food delivery services to survive,” as stated in the executive order.
“...The fees charged by third-party food delivery services, if increased without limit, have the potential to prevent local food service establishments from being economically viable,” the order continues.
The cap for delivery fees is set at no more than 15% of the purchase price of food/beverage ordered, exclusive of tip and tax. Other fees, besides credit card fees, are capped at 5% under the same guidelines.
Any person who knowingly violates this executive
order is guilty of a class B misdemeanor.
A Doordash spokesperson shared the following statement with the Dispatch:
“Doordash has always supported restaurants. Pricing regulations could cause us to increase costs for customers, which could lead to fewer orders for local restaurants and fewer earning opportunities for Dashers. These regulations can also remove options available to restaurants by limiting their ability to opt-in to additional services to help their business. We remain focused on working with policymakers to reach solutions that better support restaurants, customers, and Dashers.”
According to a Doordash blog on the topic, titled “Understanding Merchant Fees,” the company offers food establishments a range of services that vary in commitment and cost. Cost can come in the form of flat-rate fees or commissions, which vary per restaurant.