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by admax88q 2170 days ago
That's a messaging/marketing issue, which we regulate all the time.

It would be better and fairer to legislate that GrubHub and others must be clear about where their pricing comes from rather than legislating what their prices should be.
1 comments
ceejayoz 2170 days ago
That's what this does.

They can still charge whatever they want for their fee. They just can't hide their fee in the list price of your sushi.

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admax88q 2170 days ago
What? Are we reading the same article? As far as I can tell this new rule caps fees at 10%, it doesn't say anything about charging whatever they want, while being more transparent or disclosing the fees more clearly.
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ceejayoz 2170 days ago
The headline says "Portland approves 10% cap on fees that food delivery apps can charge RESTAURANTS". There's no cap on what they can charge customers.

Legal: "Your pizza is $10. Our fee is $3, delivery is $5. Total bill $18." Restaurant gets $10.

Not legal: "Your pizza is $10 (but we quietly take $3 of that). Our fee is $3 (but we hid an extra $3 in the pizza!). Delivery is $5. Total bill $18." Restaurant gets $7.

Legal: "Your pizza is $7. Our fee is $6, delivery is $5. Total bill $18." Restaurant gets $7.

Legal: "Your pizza is $10. Our fee is $6, delivery is $5. Total bill $21." Restaurant gets $10.

Legal (but not great for business): "Your pizza is $10. Our fee is $600 because 'fuck you, we have VCs to pay', delivery is $5. Total bill $615." Restaurant gets $10.

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jiggunjer 2170 days ago
Am I the only who one thinks it's weird they itemize their service price into two types of delivery fee? Just say pizza $10, delivery $8. Restaurant gets between $9-$10.
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