UPDATE (Aug. 4) -- Clark County Commissioners on Tuesday passed an emergency ordinance imposing a temporary 15% cap on delivery fees and other service charges imposed on retail food establishments by third-party food delivery services.
According to the county, the emergency ordinance also prohibits food delivery services from reducing compensation paid to drivers.
The propsal from Commissioner Tick Segerblom is designed to help struggling restaurants amid the pandemic, the county said in a tweet.
#ClarkCounty Commissioners have just passed an emergency ordinance imposing a temporary 15% cap on delivery fees and other service charges imposed on retail food establishments by third party food delivery services.#Vegas— Clark County Nevada (@ClarkCountyNV) August 4, 2020
Original story continues below.
LAS VEGAS (FOX5) -- Clark County commissioners are set to review an emergency proposal that places limits on food delivery service fees.
The effort is in response to complaints by restaurants that popular "apps," such as PostMates, GrubHub, UberEats and DoorDash, wipe out profits from restaurants that rely on deliveries during the pandemic.
"We want them to stay in business. We want them to survive," said Commissioner Tick Segerblom, who has heard from numerous restaurant owners and Valley industry leaders on the issue.
The issue will go before the Commission August 4 as an emergency directive, and would be effective immediately.
Other major cities have placed fee caps on such services. Segerblom proposes the limit to 10 to 15 percent, and said the limits will not affect payments to delivery drivers.
The measure would not limit fees passed onto consumers, another complaint of major delivery services.
Tacotarian restaurant owner Kirsten Corral has lobbied for the change. The Ft. Apache Road location pays $6,500 a month in fees. Rent is almost half that cost.
"We paid double our rent in delivery fees to large billion dollar tech corporations. That's not how local business is supposed to run," Corral said.
GrubHub wrote a letter to the Commission to oppose the measure and released this statement:
“Any arbitrary cap – regardless of the duration – will lower order volume to locally-owned restaurants, increase costs for small business owners, and raise costs on customers. Delivery workers would have fewer work opportunities and lower earnings. We also believe that any cap on fees represents an overstep by local officials and would not withstand a legal challenge.”
DoorDash released this statement to FOX5:
"Commission caps are a form of price fixing that can have many unintended consequences. We’re eager to address the concerns of the Las Vegas Commission and look forward to working together to find a solution that ensures we continue offering affordable delivery for residents, flexible work opportunities for Dashers, and more revenue for restaurants."