Seattle caps fees on food delivery services

The Seattle City Council has voted to place a permanent cap on the basic fee that food delivery companies charge restaurants.

When restaurants sign up with delivery companies like DoorDash or Uber Eats, they are charged a fee for every order. It's how such delivery companies make money. But they have become a common complaint among some restaurants.

When the pandemic struck in 2020, and more people were staying at home, the city implemented a 15% cap on food delivery fees. The council's decision this week makes that cap permanent.

But Anna Powell with the app-based delivery service Door Dash said the company is against the ordinance.

“Price controls lead to higher costs for customers, fewer orders and revenue for restaurants, and fewer earning opportunities for Dashers," Powell said.

Prior to 2020, some companies charged restaurants up to 30% for delivery services. Supporters argue that the permanent cap will help restaurants survive while many continue to struggle financially.