(Cleveland) - Food delivery service DoorDash has found a way around a new City of Cleveland ordinance that limits the amount food delivery services can charge restaurants during the pandemic. DoorDash, in the City of Cleveland, is now charging what it calls a "Cleveland Fee" to customers who are having food delivered
This comes after Cleveland City Council and Mayor Frank Jackson approved an ordinance that caps the amount that food delivery services can charge to 15% of the total bill. Some had been charging as much as 30%, cutting into the profits of local restaurants.
In a statement, DoorDash says the fee is necessary for them to provide this service.
“During this unprecedented time, providing the best possible service for our community is critically important. In select cities where lawmakers have imposed price regulations that limit our ability to work with restaurant partners, DoorDash is considering various measures to offset their unintended consequences. In some cases, this means charging customers an additional fee when they order from restaurants in their city to help ensure that we can continue to offer them convenient delivery while helping to ensure that Dashers are active and earning and that merchants can access the services to help drive volume as dine-in remains limited.”
Cleveland City Council President Kevin Kelley told News 5 that council will, in the New Year, consider strengthening their ordinance.
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