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The Portland City Council voted unanimously today to cap restaurant fees charged by third-party delivery services.
Effective immediately, third-party delivery apps and services cannot charge restaurants more than a 10% commission if the third-party service delivers and 5% if the restaurant makes the delivery.
Companies face a $500 fine for violating the ordinance, which also specifies that delivery services cannot reduce pay for deliverers.
During the pandemic, local restaurants have counted on takeout and delivery to stay afloat. But to make deliveries, they often rely on apps like Grubhub and Caviar, companies that small local businesses have little bargaining power against and which often take a substantial chunk of each sale. Before the cap, some delivery services charged restaurants up to 30% in fees.
The ordinance was developed by Asian Pacific American Network of Oregon and the Portland Independent Restaurant Alliance.
"Restaurants owned by Black, Indigenous, people of color, and immigrants are anchors of their communities,"APANO advocacy director Jenny Lee said in a statement. "They are also some of those most at risk of closure—and if they do, they are the most unlikely to return after the pandemic."
The ordinance is intended as an emergency order, however, meaning it will remain in effect throughout Oregon's state of emergency and 90 days after a state of emergency is no longer declared.
Several major Portland restaurants have shuttered during the pandemic, including Pok Pok, Mi Mero Mole, and all five of restaurateur David Machado's eateries.
Related: At Delivery-Only "Ghost Kitchens" the Food Is Real, but the Restaurants Are Not.