Minneapolis on Monday became the latest city to limit the fees third-party delivery companies charge restaurants.
The emergency order signed by Mayor Jacob Frey caps fees for delivery or pickup at 15% of the order total. It allows restaurants to voluntarily pay more for additional services such as marketing. It also prevents delivery services from listing restaurants on their platforms without the restaurants’ consent.
“Our restaurants have stepped up to continue serving their communities while safeguarding the health of their employees and customers,” said Frey in a statement. “We need to provide every ounce of available support to them. Our restaurants are cultural institutions throughout Minneapolis, and this is urgently needed relief at a critical time.”
The order goes into effect Wednesday and will continue until 90 days after the local public health emergency expires.
More than a dozen cities and counties and one state have enacted similar measures intended to help restaurants during the pandemic. The fees associated with delivery can be 30% or higher. Restaurants have largely supported the caps, while delivery companies say they will ultimately hurt restaurants because the costs will be passed to the consumer, depressing demand.