Uber Eats is threatening to pull out of the city of Alameda because of the city’s proposed plan to reintroduce a cap on food delivery fees.
, which would go into effect 30 days after it is approved, passed its first vote 3-2 on March 7, and if passed again Tuesday, will stay in effect for two years. It would reintroduce the caps but give companies a chance to add a flat, inflation-linked customer fee.
The company said that consumer fees are one of the few ways that delivery platforms can adjust for inflation, and that the proposed law “eliminate[s] every possible lever” to cover the costs of higher pay for couriers. “I’m proud of this legislation,” Daysog told SFGATE. “The reality is, this has already been in place for two years and I have not heard of any stories of significant decline in DoorDash or Uber Eats activities in the city of Alameda.”
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