Technology

Washington state caps third-party delivery fees at 15%

It becomes the first state to place limits on the charges paid by restaurants to delivery companies.
Washington State
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Washington state will cap the fees charged to restaurants by third-party delivery companies, becoming the first state to do so.

The proclamation by Gov. Jay Inslee on Thursday caps delivery fees at 15% of the order total, and total fees and commissions can be no higher than 18%. 

Inslee acknowledged the support delivery companies have provided to restaurants and consumers during the pandemic. “However, these are difficult times,” he said in a statement. “We all must sacrifice during these uniquely challenging times to both support our businesses and slow the spread of COVID-19. We encourage Washingtonians to support their local restaurants safely through delivery and take-out options that are available.”

The order goes into effect next Wednesday and will apply in any county where indoor dining has yet to return to 50% capacity. 

Washington joins a long list of cities and municipalities to level similar caps, including its largest city, Seattle. Chicago earlier this week advanced its own measure limiting fees. They’re intended to help struggling restaurants during the pandemic that would otherwise have to pay fees and commissions of as high as 30% or more.

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