Aldermen Push Cap On Online Delivery Fees Amid Coronavirus Crisis

CHICAGO — Chicago aldermen on Monday proposed capping fees restaurants pay to third-party delivery services while indoor-dining restrictions due to the coronavirus crisis that has put the squeeze on profits.

The ordinance sponsored by Aldermen Scott Waguespack (32nd) and Matt O'Shea (19th) would prohibit delivery services such as UberEats and Grubhub, for instance, from charging fees, greater than 15 percent of orders placed through on-line delivery services.

The proposal would make it illegal for online delivery services to charge higher prices for food that are higher than listed on restaurant menus, and require the third-party delivery services to provide a way for customers to tip restaurant employees. The ordinance calls for fining scofflaw companies from $1,000 to $3,000 for each violation, and the proposed restrictions would end 90 days after government restrictions permit an indoor-dining capacity of at least 40 percent.

"Restaurants in Chicago are the heartbeat of our neighborhoods. … We've seen far too many of them go under during this pandemic. This piece of legislation will help more of them keep serving people, serving our constituents, keeping their workers at the table and providing food and employment for them as well," Waguespack said.

"Independent restaurants need this critical support now more than ever."