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City-County Council OKs 20% limit on third-party food-delivery fees

(Image from Video Provided/Grubhub)

INDIANAPOLIS (WISH) — Indianapolis City-County Council on Monday night approved a measure to limit fees from third-party food-delivery services while Marion County limits restaurant capacities.

Proposal 106 will limit fees to no more than 20% of a meal’s price. A news release from the city said the limit is in line with caps other U.S. cities have imposed.

The measure also prohibits third-party delivery service companies from attempting to make up lost fees by passing costs on to drivers or customers.

More people have been using third-party delivery services because of COVID- 19 restrictions. At times during the pandemic, many businesses have found themselves depending on GrubHub, DoorDash, Uber Eats and similar companies.

Two Democrat council members, John Barth and Keith Potts, drafted the proposal. Before its approval Monday, they had amended the proposal first presented to the council in February.

A third-party delivery service could face a fee of up to $500 for charging more than the outlined amounts.

In February, some business owners told News 8 that they think the efforts from the government to help businesses would be better spent focusing on reopening and getting people back downtown.

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