AURORA | DoorDash is charging Aurora customers an extra $1.50 for food delivery, and UberEats has plans to do the same, after the city council capped fees the app giants charge local restaurants when delivering their food.
DoorDash spokesperson Campbell Matthews confirmed the company created the “additional fee” to offset “unintended consequences” of the city council’s cap on third-party food delivery services, which took effect last month with the support of some restauranteurs.
The extra $1.50 cost on orders will “ensure that Dashers are active and earning and that merchants can access the services to help drive volume as dine-in remains limited,” Matthews said.
Customers see the fee displayed when they order food.
Spokesperson Sarah Ashton said UberEats, a wing of tech giant Uber, is planning to levy a similar $1.50 fee soon to prop up its operation.
GrubHub, another app-based delivery platform, told the Sentinel it has not created a similar fee.
Beginning in mid-December, the third-party delivery companies could charge restaurants a fee of no more than 15% of the purchase. The city’s ordinance will sunset on March 31, 2021 or sooner if restaurants are allowed to resume filling 100% of their capacity under public health rules.
Lawmakers 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 lawmakers approved a similar ordinance in October. In December, The Denver Post reported that DoorDash created a $2 “Denver fee” to “make up for revenue lost in the pandemic as a result of the city’s imposed commission caps.”
The app-based delivery services opposed Aurora’s measure, arguing that limiting their profits threatened their ability to deliver food for local restaurants, keep their apps running smoothly and pay delivery drivers.
Aurora’s rules also require third-party deliverers to include the delivery fee as a line item on a customer’s receipt.
But the costs won’t be passed on to delivery drivers. The ordinance also specifically banned companies from cutting into delivery drivers’ tips to make up the difference from the 15% cap.