Long Beach Council To Consider Modifying Caps On Food Delivery Fees

LONG BEACH, CA — At its April 21 meeting, the Long Beach City Council will consider making changes to the 15% cap on third-party food delivery fees that it instituted five years ago.

A proposed ordinance under consideration would allow food delivery platforms to potentially charge restaurants more than 15% if they offer services beyond basic delivery.

The city originally placed a 15% cap on fees in 2021 during the COVID-19 pandemic, when food deliveries skyrocketed. Now, the legislation under consideration would:

• Repeal the existing emergency ordinance adopted in January 2021.
• Regulate third-party food delivery services by continuing to cap fees for basic delivery and listing services at 15% of the purchase price.
• Allow businesses to opt into additional services from delivery platforms for additional fees.

However, delivery companies would be required to provide clear definitions for core delivery services, delivery fees, and allowable charges for additional services.

If enacted, residents could see increased delivery fees or service charges on their food orders, depending on the ordinance's specifics and restaurant choices.

If approved by the Council, the legislation would take effect 31 days after being signed by the mayor.

The full proposal can be seen on the city's website.