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Palm Springs puts breaks on food delivery fees

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.

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