Denver City Council has tentatively agreed to cap fees. Delivery companies can bill restaurants to help the already ailing industry as the coronavirus pandemic continues.
The Council unanimously approved the proposal on an assent agenda, although a second vote is needed to fix the price cap. This would limit the commission fee from companies like Grubhub, DoorDash, and Postmates to 15%.
This is welcome news for local restaurateurs, who have said that these fees can be as high as 40% of the total bill and the reduced commission saves money that can be reinvested in the businesses and their employees. It is also particularly well timed, many have said, because when the weather gets colder, many customers will not eat on terraces and will instead order take-away.
At the same time, however, the cap could increase bills for customers, a Grubhub spokesman warned. Revenue from the price cap could ultimately be passed on to those who order the food.