LAS VEGAS (KLAS) — In a move to help struggling restaurants, Clark County commissioners passed an emergency ordinance that imposes a temporary cap on what food delivery services can charge restaurants.
Services such a Grubhub, UberEats, DoorDash and Postmates charge restaurants a delivery fee which is a percentage of the total food costs. This ordinance will keep that from exceeding 15% of the food bill.
According to the new ordinance, price gouging concerns had become an issue and food delivery services were not willing to negotiate a competitive rate with restaurants which have had to rely heavily on food delivery services amid the pandemic. The fees were putting a financial strain on businesses, especially smaller restaurants that operate on a slim margin.
The ordinance also includes safeguards to make sure the drivers are not penalized and makes it unlawful for a food delivery service to increase its pre-order fee as a result of the cap going into effect.
Similar ordinances have been passed in California.