728x90 Revry

Featured Dine & Sip News Dine & Sip

New Palm Springs Ordinance Limits Third-Party Food Delivery Service Fees

Online Pizza Delivery

In an effort to prevent food delivery services from overcharging customers and businesses during the COVID-19 pandemic, the Palm Springs City Council recently approved a new ordinance that limits fees that providers such as Uber Eats, Postmates and DoorDash, may charge residents and businesses.

The new Ordinance establishes the following limitations:

  • Food delivery services cannot charge more than a 15% delivery fee on the purchase price of each online order.
  • No more than 5% of the purchase price can be charged to the business for any combination of service fees.
  • All tips must go exclusively to the driver. 

Example: If a customer orders a meal that is advertised at $10 on the third-party delivery service’s app, the delivery service cannot charge more than $10 for the meal. Nor can the service provider charge the restaurant more than $1.50 as a delivery fee — or the restaurant more than 50 cents as a fee or commission for their placement on the delivery service’s app. If the customer agrees to provide the delivery person a $2 tip, that tip amount must go to the delivery person; not the third-party delivery service company.

For more information, visit palmspringsca.gov

Related posts

Get a Taste of Greater Palm Springs with These Video Series

Visit Greater Palm Springs

What to Do in Palm Springs, California’s Timeless Getaway

Provided to Gay Desert Guide

Gay Wine Week 2020

Jonathan Dooley

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy