COVID-19 has turned the battle over food delivery regulation into a life-or-death issue
How much should delivery companies be able to charge restaurants? It’s a question that has been brought into sharp relief by COVID-19, as restaurants have seen takeout and delivery orders, which might have previously made up a fraction of their sales prepandemic, become essential to their survival.
On the consumer side, delivery apps often charge customers a flat rate for delivery or simply tack on a percentage-based service fee. But just because you’re paying $5 to Postmates or Grubhub for delivery from your local pizzeria, doesn’t mean the business is off the hook.
“We want to do all we can to help improve their [restaurants’] chances of survival, and the worst thing we could do is not lean in when we see these cases that look a lot like price gouging,” Councilman Mitch O’Farrell, who introduced the original motion,More than 20 Los Angeles restaurants, including Canter’s, Sichuan Impression and Sweetfin, signed a petition opposing the City Council’s commission cap due to concerns it could lead to increased costs for consumers and ultimately hamper...
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