The Oneida Daily Dispatch (Oneida, NY)

Oneida County sets limit on third-party food delivery service fees

- By The Dispatch Staff newsroom@oneidadisp­atch.com @Oneidadisp­atch on Twitter

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.

 ??  ?? A food delivery in progress
A food delivery in progress

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