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There's a move to limit what meal delivery services can charge during pandemic

Posted at 8:29 AM, Jul 20, 2020
and last updated 2020-07-20 10:29:37-04

SALT LAKE CITY — Delivery services have grown during the pandemic as a way to get meals to people who are staying at home more and don’t want to go out.

But while the deliveries have helped many restaurants stay in business, the fees the services charge are cutting into profits, according to an article in the Salt Lake Tribune.

The companies that dominate the online ordering and delivery industry - Grubhub, DoorDash, Uber Eats and Postmates - all take an average 30 percent commission.

The Tribune reports that some local restaurant and bar owners want Gov. Gary Herbert and the legislature to step in and regulate the industry.

A report by NPR details how several large cities - like New York and Seattle - have restricted how much these apps can charge restaurants and bars that are already struggling to make ends meet.

In Utah, a petition called “Save Utah Bars” focuses on issues such as allowing “to go” business for bars.

It also has an item calling to cap how much delivery apps can charge during a pandemic.

The man who started the petition has told FOX 13 he wants people to contact their lawmakers to get changes made, especially if there`s an emergency session of the legislature anytime soon.

The delivery companies say the fees are needed to pay drivers and cover costs like background checks, insurance, app technology and customer care support.

The Tribune article points out there are some less expensive platforms such as Chefpanzee based in Salt Lake City.

It charges about 10 percent, but doesn'`t have the reach of the larger, more well-known companies.

The Salt Lake Tribune and FOX 13 are content sharing partners.