What Seattle’s Delivery Fee Law Really Means for Small Restaurants
The Seattle City Council approved an ordinance capping the fees third-party delivery companies can charge at 15%, according to Restaurant Dive, The law enshrines emergency pandemic action that limited fees but was soon to expire. Although charges cannot exceed this percentage, there is an exception for restaurants that choose to use other services provided by certain delivery companies, such as marketing assistance. The law also protects independent contractors working as drivers for delivery companies, stating that their wages cannot be reduced in order to comply with the new law.
In a Seattle City Council press release, Steve Hooper, president of the Seattle Restaurant Alliance, said the ordinance was essential. “Today’s vote making the 15% commission cap permanent ensures the best customer experience by keeping delivery a viable option as restaurants face post-pandemic challenges and provides restaurants with the assistance and predictability much needed without further financial hardship as they seek to recover and thrive.”
In stark contrast to the delivery space behemoths, such as DoorDash, GrubHub and Postmates, there are a handful of smaller services that have carved out their niche as alternatives focusing on a more sustainable and equitable business model. that works for both the delivery business and the restaurant. . Today featured a few, including Toast, which doesn’t charge businesses that already use their point-of-sale technology, and Traililo, an app that provides groceries and alcoholic beverages in addition to meals, putting emphasis on Latinx retailers.