Palm Springs Limits Food Delivery Service Fees

The city of Palm Springs lays out new rules to protect diners and restaurants who are dealing with food delivery services.

“It’s basically capping the amount of delivery fees that they can charge, so for example if the meal you ordered is $10, 15% is capped, so the delivery fee that they could charge would be $1.50,” said David Ready, City Manager of Palm Springs.

Previous complaints led to the new ordinance.

“There was increasing complaints with regards to, two things, what the companies were charging for delivery, but also what they were charging the restaurants, and add on just for them to use the service,” explained Ready.

Palm Springs is not the first to put a restriction like this in place, big cities like Los Angeles have also implemented similar guidances and extended them multiple times.

In response, Postmates tells NPR news that limiting commission makes it harder to operate and kills the whole industry’s ability to provide the services restaurants need to stay open during this national emergency.

“There should be a law in place to help drivers get all their tips, also I feel like you should negotiate, there should be a negotiation between the driver and the company because sometimes I feel they don’t pay you the amount that you should get,” said
Carlos Flores, Uber Eats Driver.

“If people using the service want to tip the driver, tips are important they should go to that driver,” added Ready.

Drivers are thankful for the city stepping up to help them, especially during this tough time.

“Right now in this pandemic, people really need their money and if they’re not disclosing that they’re getting their tips and their not getting their money and it’s going somewhere else, and you know, you need those extra dollars to pay for rent or food or anything,” said Flores.