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House Co-Sponsorship Memoranda
House of Representatives
Session of 2021 - 2022
Regular Session
MEMORANDUM
| Posted: | April 21, 2021 09:53 AM |
|---|---|
| From: | Representative Sara Innamorato and Rep. Nick Pisciottano |
| To: | All House members |
| Subject: | Food Delivery App |
During the pandemic, food delivery services have multiplied and it is now common to have food from our favorite restaurants delivered in a contact-less delivery to our doorstep. While these services are convenient, fees charged by the delivery apps can be exorbitant and eat into the profits of locally-owned restaurants. While franchised restaurant chains can leverage their large footprint to drive down fees from delivery services, small restaurants do not have the same market power and can be charged processing fees in excess of 30% that decimate already-thin profit margins. Many single-location restaurants lose money on delivery service transactions, but still participate in order to compete for market share with chain restaurants. Our bill will protect small restaurants by capping third-party food delivery fees at 15% (the average percentage fee charged to chains) and ban practices that delivery apps use to manipulate small businesses by requiring that a delivery app have an agreement with the restaurant prior to delivering food from that restaurant. As we move closer to a post-pandemic economy, we should protect small business owners by guarding against unfair fees and defending their autonomy from unscrupulous tech companies. Please join us and stand with your local pizzeria, your favorite takeout place, neighborhood bar, and other local restaurants that need a fair playing field to deliver their delicious food. |
Introduced as HB1617