Amid price gouging concerns, county passes new ordinance capping fees restaurants pay for food delivery

Local News

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.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Don't Miss

Trending Stories