Seattle Caps Delivery Fees, Requires All Tips Go To Drivers

SEATTLE, WA — Seattle Mayor Jenny Durkan signed an emergency order Friday, imposing a 15 percent cap on fees that app-based delivery services can charge restaurants during the coronavirus crisis. The mayor's order also mandates third-party delivery companies provide 100 percent of tips to their drivers, without making any changes to compensation.

Durkan said violating her order is a misdemeanor and will be prosecuted by the city.

"We know that so many of our small businesses are hurting because of the COVID-19 pandemic, and that delivery services have been a lifeline for our restaurants during this unprecedented time," Durkan said. "Unfortunately, some third-party delivery services are charging exorbitant commission fees, which exacerbates the financial hardship many restaurants are already experiencing."

District 1 Councilmember Lisa Herbold praised the West Seattle Chamber of Commerce, which advocated for the policy after many of its members expressed dismay at being charged commission rates up to 30 percent on some apps.

Council President M. Lorena Gonzalez said the order is essential to prevent corporations from profiting off small business owners who have already encountered extreme economic hardship during the crisis.

"With tight margins, every dollar paid to an app-based delivery service is a dollar taken from our local restaurants, economy and workforce," Gonzalez said. "We know some of these corporations are imposing inflated fees and profiting from this crisis on the backs of our main street. We cannot allow that to happen."

The mayor's order went into effect Friday and will remain in place until all restrictions on in-house dining are lifted. Restaurants who need to report a violation of the mayor's rule can contact the Seattle Police Department at 206-625-5011.

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