Third-party food delivery service DoorDash is pushing back on a Minneapolis order that limits how much companies like it can charge restaurants.
On Monday, Minneapolis Mayor Jacob Frey announced an emergency order capping the amount third-party delivery services can charge restaurants at 15% of an order’s value. The measure will affect companies like UberEats, BiteSquad, DoorDash and GrubHub.
The order will remain in effect 90 days after the city’s COVID-19 emergency ends. Delivery services can charge restaurants more for additional products and services, but the restaurant must agree to these charges.
Frey, who worked on the order alongside Council Member Lisa Goodman, also said delivery services cannot cut into driver gratuity to meet the order’s terms.
DoorDash sent an email to its drivers Tuesday, claiming the order could make it more difficult for the company to work with local restaurants, and that restaurants would have to increase prices as a result.
“This could restrict our ability to work with restaurants in Minneapolis, leading to increased costs for customers, fewer orders, and fewer earning opportunities for you when you need it most,” the email read.
“This new regulation could also hurt the small businesses it’s claiming to help by limiting our ability to provide services suited to each restaurant’s needs.”
DoorDash encouraged its drivers to contact Frey and voice opposition to the order, and provided a link to a feedback form that would be forwarded to the mayor's office.
DoorDash drivers are given a base pay level based on the time, distance, and "desirability" of a delivery, and gets additional pay during high-demand times, as well as receiving customer tips.