IE Business Daily Business news for the Inland Empire.
Palm Springs has placed limits on third-party food delivery fees.
An ordinance meant to prevent those companies from overcharging during COVID-19 prohibits more than a 15 percent delivery fee on the purchase price of an online order, according to a statement on the city’s ordinance.
Also, no more than five percent of a purchase price can be charged for any mix of service fees, and all tips must go exclusively to the driver.
For example, if a customer orders a meal advertised for $10 on the third-party delivery service’s app, the delivery service may not charge more than $10 for the meal. Also, the service provider cannot charge the restaurant more than $1.50 for the delivery.
The ordinance, which was passed recently, is aimed at companies like Uber Eats, Postmates, and DoorDash, according to the statement.
