Business & Tech
Santa Clara County Approves Cap On Food Delivery Service Fees
Some services can charge excessive fees and commissions that can be up to 30% or more.
December 17, 2020
Cupertino, CA – The Cupertino Chamber of Commerce is grateful for the leadership of County Supervisor Joe Simitian and the other four Santa Clara Count Supervisors for their action yesterday unanimously adopting an ordinance that put a temporary cap on commissions and fees charged by third-party food delivery services to local restaurants.
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Based on a survey of restaurants in August of this year, the Cupertino Chamber found that over 80% of respondents used third-party delivery services. Some services can charge excessive fees and commissions that can be up to 30% or more. Since then, Chambers of Commerce throughout the valley had been seeking a countywide solution.
The ordinance limits delivery service fees charged by third party delivery at 15% of the value of an order, and the fees for order and listing services (pickup/takeout) at 10% of the value of an order. The costs of compliance may not be imposed on delivery workers and allow enforcement through civil action by restaurants or delivery workers in the courts.
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The urgency ordinance applies throughout Santa Clara County, including Cupertino and the other 14 incorporated cities, except those with a more restrictive cap.
COVID-19 imposes extraordinary financial hardship on local restaurants. This County ordinance helps keep delivery fees within a reasonable range during the pandemic," said Anjali Kausar, CEO of the Cupertino Chamber of Commerce.
The Cupertino Chamber of Commerce is a non-profit business and community advocacy organization with members that employ more than 45,000 people. The Chamber works with government, education, and private industry to strengthen local businesses and advocate for a vibrant, sustainable, and healthy economy and community. For more information, visit www.cupertino-chamber.org.
This press release was produced by the Cupertino Chamber of Commerce. The views expressed are the author's own.