AURORA | DoorDash is charging Aurora customers an additional $ 1.50 for grocery delivery, and UberEats plans to do the same after the city council capped fees, the app giants are charging local restaurants for their grocery delivery.
DoorDash spokesman Campbell Matthews confirmed that the company collected the “additional fee” to offset the “unintended consequences” of the city council’s cap on third-party grocery delivery services. This took effect last month with the help of some restaurant owners.
The $ 1.50 additional cost for orders will “ensure dashers are active and earning and that merchants can access the services to increase volume as dine-in remains limited,” said Matthews.
Customers see the fee that is displayed when they order food.
Spokeswoman Sarah Ashton said UberEats, a wing of tech giant Uber, plans to collect a similar fee of $ 1.50 soon to support its operations.
Another app-based delivery platform, GrubHub, informed the Sentinel that it did not charge a similar fee.
From mid-December, the third-party delivery companies were able to charge restaurants a fee of no more than 15% of the purchase price. The city’s ordinance ends March 31, 2021 or earlier when restaurants are allowed to return to 100% capacity under public health regulations.
Legislators said the cap would help restaurants survive A brutal year for many small businesses as the COVID-19 pandemic approaches its 12 month mark.
Denver legislature passed a similar ordinance in October. In December, The Denver Post reported that DoorDash introduced a “Denver fee” of US $ 2 to “make up for revenue lost in the pandemic as a result of the city’s commission caps.”
The app-based delivery services opposed Aurora’s move, arguing that capping their profits jeopardized their ability to deliver groceries to local restaurants, keep their apps running smoothly, and pay delivery drivers.
According to Aurora’s rules, third party vendors must include the delivery fee as a line item on a customer’s receipt.
However, the costs are not passed on to the deliverers. The regulation also expressly forbade companies to shorten the delivery driver’s tips in order to compensate for the difference from the upper limit of 15%.