San Francisco permanently caps delivery app fees for restaurants at 15%
1–10 of 84 posts
Re: San Francisco permanently caps delivery app fees for restaurants at 15%
#2Ah, for once, I agree with the BoS.
They need to ensure these apps don't make up their loss in profits elsewhere (taking from restaurants) or being creative like airlines when it comes to adding cost.
Re: San Francisco permanently caps delivery app fees for restaurants at 15%
#3It would be better to cap the transaction fee that goes to the (tech) middleman, as a percentage of the bona fide delivery fee that gets paid to the deliveryperson. If a pizza costs $25, a traditional delivery fee/tip adds another $10, and Uber charges $50 total, that is an additional 150% surcharge for simply running a website!
Re: San Francisco permanently caps delivery app fees for restaurants at 15%
#4Ah, for once, I agree with the BoS. They need to ensure these apps don't make up their loss in profits elsewhere (taking from restaurants) or being creative like airlines when it comes to adding cost.
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Re: San Francisco permanently caps delivery app fees for restaurants at 15%
#5If these fees are truly overbearing, wouldn’t you expect new competing delivery services to undercut incumbents?
The delivery space seems very competitive already which leads me to believe that the fees are representative of high operational costs
Re: San Francisco permanently caps delivery app fees for restaurants at 15%
#6The restriction may have made sense during a pandemic, but long term this really seems like something for markets, rather than governments, to solve
Re: San Francisco permanently caps delivery app fees for restaurants at 15%
#7Do these fees also cover the cost of the deliver driver for the restaurant? Because 15% still seems high, but that might not be a bad deal for the restaurants if it's covering the cost of delivery.
Re: San Francisco permanently caps delivery app fees for restaurants at 15%
#8The restriction may have made sense during a pandemic, but long term this really seems like something for markets, rather than governments, to solve
The fact that there are many apps competing for this businesses, but the costs to the restaurants are still so high, seems suspicious to me.
Re: San Francisco permanently caps delivery app fees for restaurants at 15%
#9Reading the article I couldn't find anything - is there no minimum amount available? 15% of a $5 order obviously not enough to deliver it. Or is this more of a measure to move the fees onto the customer so they are more explicit?
Re: San Francisco permanently caps delivery app fees for restaurants at 15%
#10Suppose two meals at a restaurant cost $30 for takeout. Depending on how much you value your time, spending even $20 to have those meals delivered to you might be worth 20 minutes of commuting back and forth. A 67% delivery fee could still be a bargain to you. The government should not interfere.