While restaurants have hailed these caps during the pandemic, delivery companies and drivers have been widely against them. DoorDash and Uber Eats added additional customer fees in various municipalities that capped fees. DoorDash said in a blog post in March it took that route to cover the costs associated with delivery. The company also claimed these limits decrease order volumes, which in turn, means its couriers earn less money.
“Experience with fee caps proves that they are bad for drivers, bad for restaurants and bad for consumers,” Geoff Vetter, spokesperson for the Protect App-Based Drivers & Services Coalition, said in an email to Restaurant Dive. This coalition is formerly the Yes on Prop 22 Coalition, which advocated to keep drivers classified as independent contractors in California through Proposition 22, which passed last year.
“In cities with temporary fee caps, customers experienced price increases between $1.50 to $3 per order which led to significantly reduced customer demand hurting the very restaurants they were intended to help,” Vetter said. “Our broad coalition of thousands of drivers, app-based platforms, community, and social justice advocates will continue working with the Mayor and Board of Supervisors to educate them about the harm of a permanent fee cap.”