Daily News | DoorDash is accused of ‘thwarting’ Philadelphia’s cap on food-delivery fees
DoorDash, the largest third-party restaurant delivery service operating in Philadelphia, is accused of skirting the city’s rules instituted during the pandemic that cap commissions at 15%.
Any merchants that were previously contracted at the basic 15% did not have their rate changed. The owners can restore the 15% plans at any time by notifying DoorDash, a spokesperson said.Some restaurateurs contacted by The Inquirer said they were told that if they kept the basic plan, their delivery area would shrink and their customers’ delivery charges would increase. They said they were surprised by the emails on July 24, which said the effective date would be July 26.
“The reality is that most restaurants won’t receive this email because the recipient may believe it’s another promotional email, the email lands in a spam folder, or most likely, the email is delivered to an employee who may no longer be employed with the restaurant,” said Fileccia, calling DoorDash’s opt-out process unfair.
In mid-2020, Philadelphia joined a list of cities capping fees. Philadelphia capped them at 15% — 10% for delivery and 5% for marketing — in a bill sponsored by then-City Councilmember Cherelle L. Parker, now the Democratic nominee for mayor.the law was modified to allow delivery companies to also offer pricier enhanced services, such as wider delivery areas and better marketing that puts ads in front of more potential customers.
Kitagawa, of Wood Street Pizza, said he learned that DoorDash was restoring his old plan, which calls for a 20% commission.
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