PRESS RELEASE
Mayor Young Requests Relief for Baltimore's Small Businesses
Mayor sends formal letter to Big 4 food delivery service apps that are accused of charging higher-than-acceptable fees to local restaurants.
BALTIMORE, MD. — Today, Mayor Bernard C. “Jack” Young sent a formal letter to the four largest food delivery service apps requesting they adjust their practice of charging higher-than-acceptable rates for delivering meals from local restaurants to home-bound residents.
The Mayor's letter, which was sent to DoorDash, Postmates, Grubhub , and Uber Eats, seeks to cap at 15 percent the amount the companies charge restaurants for delivering meals to home-bound residents.
Locally, there have been reports that food delivery apps are charging service fees as high as 30 percent, leaving many local restaurants struggling to make ends meet.
The City is legally prohibited locally from imposing a cap on the fees the companies charge restaurants.
"We have stressed the life-or-death importance of our residents remaining indoors as much as possible, and many have come to rely on their access to meals through delivery apps," Mayor Young said. "We want to make sure that these companies are able to charge a reasonable rate per transaction without further burdening small businesses that are struggling to remain in business."
A class-action lawsuit was filed recently, alleging that the four companies charged “exorbitant” commission fees on restaurants.
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