Seattle council to propose permanent cap on food delivery fees

SEATTLE — A new ordinance that would limit the fees that food delivery platforms can charge restaurants is set to be introduced during a Seattle City Council committee meeting on Wednesday.

If passed, the legislation would ensure that food delivery fees must not exceed 15% of the price of a customer’s order.

Food delivery platforms, such as Uber Eats and DoorDash, can charge restaurants over 30% for delivery services.

Deliveries account for 21 to 30% of restaurants’ sales, according to a presentation from Seattle City Council Central Staff.

Many restaurants struggling to stay in business are increasingly relying on food delivery, but have limited bargaining power to negotiate fees charged by delivery platforms.

“The net profit margin for many restaurants is about ten percent and can be as low as three to five percent for full-service restaurants, leaving little room for fees that food delivery platforms charge for their services,” the proposed ordinance reads in part.

A cap on delivery service fees has been in place in the city since April 2020, when the council modified an emergency civil order passed by then-Mayor Jenny Durkan during the COVID-19 pandemic.

A similar cap was in place statewide from November 2020 until June 2021 when Gov. Jay Inslee rescinded a proclamation related to indoor dining capacities.

Minneapolis, New York City, Philadelphia and San Francisco have all already enacted laws that permanently cap delivery service fees.

If the ordinance is passed by the city council, it will then head to Mayor Bruce Harrell for his signature.

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