PEORIA, Ill. (WMBD) — The ordinance caps third-party food delivery service fees at 10% of the purchase price, and restricts the totality of all fees to no more than 15% of a restaurants monthly net sales through any given delivery service.
The fee cap will expire after the indoor dining capacity returns to 50% or greater for 60 consecutive days.
Amy Eid, a co-owner of One World Café, says third-party delivery services like DoorDash, take up to 30% of the item price on a delivery.
She says when they look at costs at the end of the day, they don’t make any money off of third-party delivery services, and usually only break even.
She believes adding a cap would help their profits overall.
“If the city made moves to put a cap on their fees, it would be a huge, huge, move of support to local businesses. We’re talking thousands of dollars a year that would be local. These big companies aren’t local, so if the city made a move to cap that they would be helping us tremendously,” said Eid.
WMBD did receive a statement from a DoorDash spokeswoman, which reads:
“DoorDash has always supported restaurants. Pricing regulations could cause us to increase costs for customers, which could lead to fewer orders for local restaurants and fewer earning opportunities for Dashers. Pricing regulations can also remove options available to restaurants by limiting their ability to opt-in to additional services to help their business. We remain focused on working with policymakers to find solutions that better support restaurants, customers, and Dashers.”