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File #: 2768-2020    Version:
Type: Ordinance Status: Passed
File created: 11/20/2020 In control: Rules & Reference Committee
On agenda: 11/23/2020 Final action: 11/25/2020
Title: To enact new chapter 574 of the Columbus City Codes, pertaining to third-party food delivery services; to establish a limit on the commission that third parties can charge to restaurants located in the City of Columbus to 15% of the purchase price on delivery or pick-up orders while restaurants are unable to provide unrestricted dine-in service; to prohibit a reduction in compensation for delivery drivers as a result of this limit; and to declare an emergency.
Sponsors: Elizabeth Brown
Explanation

BACKGROUND

Due to the ongoing public health emergency resulting from COVID-19 which has placed a burden on restaurants by necessitating reduced dine-in capacity, it is in the public interest to take action to protect restaurants that have been compelled to rely upon takeout and delivery orders as a significant source of revenue. This action aims to enable restaurants to survive the crisis and remain as sources not only of food but of employment and economic vitality in the City of Columbus.

Many consumers use third-party applications and websites to place orders with restaurants for delivery and take-out, especially in light of the social distancing requirements mandated in response to COVID-19. While service agreements between restaurants and third-party delivery platforms vary, currently these agreements often include commission fees of 30% or more of the purchase price.

Capping these commission will support the goal of easing the financial burden on restaurants that are struggling during the public health emergency and promoting the availability of prepared food via delivery without unduly burdening third-party platforms or restaurants.


EMERGENCY DESIGNATION: Emergency action is requested in order to immediately ease the burden on restaurants and similar establishments suffering financial hardship during the COVID-19 pandemic.



Title

To enact new chapter 574 of the Columbus City Codes, pertaining to third-party food delivery services; to establish a limit on the commission that third parties can charge to restaurants located in the City of Columbus to 15% of the purchase price on delivery or pick-up orders while restaurants are unable to provide unrestricted dine-in service; to prohibit a reduction in compensation for delivery drivers as a result of this limit; and to declare an emergency.



Body

WHEREAS, COVID-19 is a respiratory disease that can result in serious illness or death, caused by the SARS-CoV-2virus, which is a new str...

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