Commission rates on food deliveries to be capped

Supervisors from Santa Clara County are looking into the possibility of capping the rates food delivery apps such as GrubHub can charge, and the cap could go into effect in a matter of weeks.

Pandemic-hit restaurants have been forced to find other ways of serving their customers, with take-out orders a saving grace for many. These eateries are often reliant on delivery services, many of which are recognized by the Logo Design on the Bags that they deliver with. However, some have been charging as much as 30% of the food’s price for deliveries. County Supervisor Joe Simitian feels that this unacceptable and went on to say:

“Just as we have statutes that protect against price-gouging on various products during times of crisis, it seems appropriate here to look at a cap on commissions and fees to charge."


Simitian raised the issue at the latest county supervisors’ meeting and tried to convince his colleagues that capping the commissions is necessary in order to keep the restaurants safe from price gouging tactics that could seriously jeopardize their future. The initial proposal is to cap the commission rate at 15%.

All of the supervisors at the meeting appeared to be in agreement about the issue. Otto Lee, a supervisor who is newly elected, wants the board to take action immediately.

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