Alderman Proposing 5% Cap On Restaurant Delivery Fees During COVID-19 Pandemic

Food Delivery

CHICAGO (WBBM NEWSRADIO) -- Food delivery companies like GrubHub, DoorDash, and Uber Eats would have new limits in Chicago if an alderman has his way.  

Ald. Scott Waguespack is proposing an ordinance that would limit the fees charged to restaurants by food delivery companies to five percent; rather than the 25 to 30 percent that companies are charging restaurants now - that's for the percentage of the order.

The Chicago ordinance would have a Jan. 1 expiration date. 

The ordinance is similar to what was done in San Francisco, although there the fees are capped at 15 percent and it was done through an emergency order issued by San Francisco Mayor London Breed. New York was considering a similar cap before the stay-at-home order, which has a lot more people ordering through these services.

According to Crain's Chicago, the Illinois Restaurant Association said last week that it had asked Mayor Lori Lightfoot to consider implementing a cap via an emergency order, similar to what the San Francisco mayor did.

The Chicago proposal would require that all delivery fees go to the drivers and would fine companies up to $3,000 for noncompliance. Restaurants have long complained the fees charged by GrubHub and others are too high.

The ordinance could be introduced Wednesday at the virtual Chicago City Council meeting.