San Francisco Caps Delivery App Fees at 15 Percent

On Friday, San Francisco mayor London Breed issued an order requiring third-party delivery apps operating in the city to cap commissions charged to restaurants at 15 percent. The measure is intended to provide relief for restaurants who have turned to takeout and delivery orders to stay open during the coronavirus crisis.

According to EATER San Francisco, GrubHub began fighting the order even before it was issued, writing in an email to customers on Thursday night that costs could rise by as much as $10 per order.

In an email subject-lined “Do your part to save local restaurants,” the Chicago-based app wrote that “Mayor London Breed wants to impose a limit on a restaurant’s ability to pay for delivery services. This will increase your fees by $5–10 per order and immediately cripple delivery orders, outweighing any potential benefits when takeout is the only option restaurants have to stay open.” The company asked that users of the platform contact the Mayor’s office to oppose the order. (You can see the full email here.)

Not every third-party delivery app is taking the same defensive approach. San Francisco’s order comes just a day after DoorDash announced it would cut fees in half for restaurants with five or fewer locations.

San Francisco’s city-wide cap and DoorDash’s fee reduction will both go into effect on Monday, April 13.