HB 1123 would prevent UberEats, DoorDash and others from charging exorbitant fees during a state of emergency
Tallahassee, FL — In an effort to help restaurants devastated by the COVID-19 pandemic, State Representative Anna V. Eskamani (D-Orlando) has filed legislation that would stop delivery apps like UberEats, DoorDash and Grubhub from charging exorbitant fees during a declared state of emergency.
Restaurants across Florida have dramatically reduced indoor-dining capacity in order to slow the spread of COVID19. But that has made their business heavily dependent on a delivery network dominated by a handful of rich technology companies that have used their leverage to charge extravagant fees amid the crisis — fees that in some cases exceed 30 percent or more per order for restaurants that operate on razor-thin profit margins even in flush times. This has been especially damaging to small, independent restaurants who lack the market heft to negotiate lower fees like the giant corporate chains they compete against.
Eskamani’s legislation (HB 1123) would end this kind of war-profiteering by prohibiting third-party apps or websites from charging delivery service fees of more than 20 percent of the cost of an order — or more than 10 percent of the cost of an order when it is delivered by the restaurant’s own personnel — during a state of emergency that lasts seven days or longer.
“The COVID-19 pandemic and the economic crisis it has caused have created clear winners and losers — like the small, family-owned restaurants that have been pushed to the brink of bankruptcy and the handful of big tech delivery companies like UberEats and DoorDash who have ballooned into market-dominating behemoths,” Eskamani said. “This legislation will help level the playing field in periods of extreme distress when the greediness of a few big tech companies can destroy the dreams of so many small restaurateurs whose businesses are integral parts of the fabric of our communities.”
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