Minneapolis imposes 15% cap on third-party takeout delivery fees

Mayor Jacob Frey says restaurants are being hit with charges up to 40% the value of an order.
Author:
Publish date:
pizza-4457006_1280

The City of Minneapolis has announced emergency measures capping the amount that a third-party delivery company can charge restaurants for delivering takeout orders.

Mayor Jacob Frey announced the cap Monday, saying that third-party companies will not be allowed to charge restaurants more than 15% of the total value of the order for its delivery.

Restaurants have increasingly turned to third-party delivery companies such as DoorDash, BiteSquad and GrubHub as they handle the increased demand for takeout during the pandemic, but Frey says in some cases restaurants have been charged up to 40% of the value of the food ordered to get it delivered.

The emergency order, which will remain in place until 90 days after the city's COVID-19 emergency ends, will cap the amount delivery services can charge restaurants at 15% of the order value, though they can charge more for additional services and products provided the restaurant agrees to pay.

What's more, it says customers can expect "increased transparency when placing an order through a third-party food service delivery platform," such as a breakdown of the meal price, a tip to the restaurant, a tip to the delivery driver, and any commissions or fees the platform charges.

And what's more, Frey says that delivery drivers "can expect to be compensated at the same rate of pay with no reduction to tips/gratuity by the third-party food service delivery platform to meet the terms of this emergency regulation."

Frey credits Minneapolis City Council member Lisa Goodman for being the "driving force" behind the order.

“The Twin Cities restaurant scene is an envy of the nation,” said Goodman. “This new policy reflects a commitment to having their backs as they confront challenges beyond their control. Making sure they get to keep more of their sales while maintaining access to delivery services will be good for the businesses and good for the overall health of our economy.”

The new rule prevents third-party delivery platforms from carrying out services for or disclosing information about a restaurant without the restaurant's consent, and can't charge them any fees that they've not voluntarily agreed to pay.

Sign up for our BREAKING NEWS newsletters

Next Up

ambulance

State Patrol investigating fatal crash near Duluth

The crash was reported around 6:15 a.m. Wednesday.

eden prairie police squad car

Carjacking reported outside shopping center in Eden Prairie

One of the suspects reportedly displayed a weapon.

court gavel

8 people charged in Medicaid fraud scheme totaling $860K

Collectively, they're charged with 46 counts of felony theft.

vaping

Minnesota gets mixed grades on its tobacco report card

In Minnesota, the economic cost due to smoking is $2.519 million with 5,910 deaths per year attributed to smoking.

Hardy Wills-Traxler

Charges: Man stabbed his father, set his home on fire

The 25-year-old has been charged with second-degree murder and first-degree arson.

Impound lot

Crowded impound lot raises COVID concerns after Minneapolis snow emergency

A vehicle owner complains about the tightly-packed impound lot following the weekend's snow.

covid-19, coronavirus

Here is Minnesota's COVID-19 update for Wednesday, Jan. 27

The latest update from the state health department.

charley's

Charges: Bar owner, employee served underage drinkers during shutdown

The bar hosted 20-30 people on Dec. 4, 2020, charges say.

police lights

Driver wearing bulletproof vest strikes pedestrian in Rochester

The 21-year-old claimed the vest keeps him warm, according to police.

Related

pizza-4457006_1280

DoorDash pushes back against Minneapolis order limiting third-party delivery fees

DoorDash claimed the order would make it harder for the service to work with restaurants and increase prices for customers.

restaurant-602894_1280

Lawmakers, restaurateurs to call for takeout wine and beer sales

It's designed to boost restaurant earnings during the coronavirus shutdown.

Gavin Kaysen: Restaurants should be allowed to sell booze for takeout, delivery

The Spoon and Stable chef wants Minnesota to adopt similar efforts seen in New York to soften the blow of COVID-19 shutdowns.

Bunny's Northeast

Bunny's Northeast says it won't reopen June 1, will stop takeout

It doesn't mean the end for the popular bar and restaurant.

294A1338

St. Paul bar now offers curbside takeout with 'drag delivery'

The Black Hart has found fun twist on the COVID-19 restrictions.

Saint Dinette

Saint Dinette halts takeout until 'path is more clear'

The popular St. Paul restaurant says it'll be "back better than ever."

Rudolph's Bar-B-Que closes after 43 years in Minneapolis

The restaurant shut its doors for good on Thursday.

Screen Shot 2020-03-19 at 9.59.59 AM

Revival slams customer who complained takeout order wasn't hot

There's a time and a place for complaints. This ain't it.