Postmates and Grubhub are not obeying the new delivery fee caps instituted by the Portland City Council, reports Eater. Three weeks after the ordinance was passed capping fees at 10 percent, the two delivery companies are still taking fees of up to 30 percent from local restaurants.
Katy Connors, an organizer with the Portland Independent Restaurant Alliance, said that the companies are using the fact that city officials and lawyers are preoccupied with other issues to take advantage of the situation. “They know that cities and city councils don’t have the resources nor the ability to really understand what it means to enforce this,” she said.
Han Hwang, owner of SE Division Street Food cart Kim Jong Grillin’ was told directly by a Postmates representative that they are not following the 10 percent cap. An email to Hwang from another Postmates representative on July 29 said that the company was working with the city “to understand the details of this new policy,” and that it “did not have a timeline as to when this cap will go into place.”
For many small businesses like Hwang’s, it’s not feasible to stop using the apps and hire a designated delivery driver. In an email to Eater, Hwang said, “I can’t begin to explain how trapped and cornered we feel because we have to deal with them.” Full Story