PORTLAND, Ore. (KOIN) — Portland city commissioners voted unanimously to cap the percentage food delivery services like Grubhub, Doordash and UberEats can charge restaurants.
The ordinance, which lasts only 90 days after the pandemic emergency declaration is in effect, caps third-party delivery fees at 10%. The cap takes effect immediately.
Previously most delivery services charged restaurants as much as 30% as well as collecting fees from customers.
Companies could be fined $500 for violating the rules.
The ordinance also caps the platforms that work only off customer pickups to 5%. Dozens of local restaurants and business groups asked the city to make the change because sometimes high delivery charges were eating into their profits.
Andres Oswill, the policy advisor to Commissioner Chloe Eudaly, wrote the proposed ordinance. Oswill said he’s aware companies may challenge this in court.
“It’s something we’ve worked closely with the city attorney on and in other cities that have done this we have not seen them take legal action,” he said.
Restaurants across the state have been closed to in-person dining since mid-March because of Gov. Kate Brown’s COVID-19 pandemic emergency order. Many have started to slowly reopen under strict social-distancing guidelines. Some of the restaurants survived during the shutdown by providing curbside pickup or food deliveries.