Denver council approves first vote to cap prices for Grubhub, other food delivery companies

Denver City Council preliminarily agreed to impose a cap on fees delivery companies can charge restaurants in an effort to help the already struggling industry as the coronavirus pandemic continues.

Council approved the proposal unanimously as part of a consent agenda, though a second vote is still required to cement the price cap. It would limit the commission fee from companies such as Grubhub, DoorDash and Postmates to 15%.

That’s welcome news for local restaurateurs who have said those fees can climb up to 40% of the total bill and the reduced commission will save money that can be reinvested into the businesses and their staff members. It’s also particularly well-timed, many have said, because as the weather turns colder many customers will refrain from eating on patios and instead will order food to go.

At the same time, however, the cap could increase bills for customers, a spokesperson for Grubhub warned. Revenue lost from the price cap could ultimately be passed on to those ordering the food.

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