Mayor of San Francisco caps Uber, Postmates and DoorDash delivery commissions

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As struggling San Francisco restaurants pin their hopes on staying open on delivery and takeout orders, city officials have stepped in to cut commissions from app makers like Uber Eats, Grubhub, DoorDash, Caviar and Postmates.

Typically, these companies charge commissions ranging from 10% to 30% of an order. On Friday, the mayor of London Breed announced a temporary 15% cap on commissions. The cap will remain in effect for the duration of the local emergency, or until restaurants can reopen for food service.

San Francisco is the first city in California to take action on behalf of restaurants. Supervisors Aaron Peskin and Ahsha Safaí, who said they had started talks on commission caps, joined Breed to make the announcement on Friday.

Some local chefs and restaurateurs see expedited ordering, which comes a week after The Chronicle, the issue of restaurants in the Bay Area struggling with expensive delivery costs, as a financial lifeline for an industry in crisis. But while restaurants breathe a sigh of relief, local delivery companies say the order could trigger higher costs for delivery orders and lower wages for delivery drivers.

In a statement announcing the order, Peskin said the commission limit was necessary because the delivery companies “refused to adjust their rates and are profiting greatly from a public health crisis.” As for the 15% figure, Safaí said he was determined after listening to the concerns of business and business leaders.



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