Denver Could Cap Commission Paid By Restaurants to Delivery Apps
On October 5, the Denver City Council will vote on whether or not restaurants will only be required to pay a 15 percent commission to delivery apps.
Companies like Uber Eats and Door Dash really help businesses to "get the name out" but restaurants are lucky to break even on those orders, Denver restaurant owner Amish Patel, told Fox 31 News.
If it passes, the ordinance, introduced by City Councilwoman Kendra Black on Tuesday, would only be in effect for four months, through the Winter months.
It would also require that 100 percent of tips go to delivery drivers and driver pay cannot be reduced to make up for the commission loss.
It appears that Uber Eats doesn't agree with Patel that a commission cap will positively impact restaurant owners.
Uber Eats told Fox 31 News, in a statement, “regulating the commissions that fund our marketplace forces us to radically alter the way we do business and ultimately hurt those that we’re trying to help the most: customers, small businesses and delivery people.”