Shannon Bird Proposes Knee-Capping Food Delivery Services

Now that Colorado has forced dining rooms closed all over the state, Adams County State Representative Shannon Bird thinks the next logical step is to allow local government officials to interfere with the fees charged by third-party delivery companies used by restaurants to deliver food.

While sounding good, such a move could cause these companies to terminate their business relationships with restaurants, putting delivery drivers out of work, and removing one of the few remaining options available to restaurants desperate to stay in business. While third-party delivery companies like DoorDash and Uber Eats charge between 10-30% to the restaurant, this fee is usually negotiated between the restaurant and the delivery company, and some delivery companies have reduced rates to help struggling businesses. Restaurants have pursued alternatives like in-house delivery or encouraging customer pickup.

A similar move was recently made by liberal Washington state governor Jay Inslee via a likely-unconstitutional executive order. On November 25th, Inslee proclaimed that delivery fees would be capped at 15% or 18% of the total order. Washington is home to government interference-induced economic failures like Seattle’s forced $15/hour minimum wage laws, which (far from helping workers) killed restaurant jobs.

Grubhub responded to Inslee’s decree:

Fee caps are well-intentioned but counterproductive at a time when restaurants need more support, visibility and order volume than ever. The caps lower pay for drivers by reducing the number of orders to be delivered, reducing restaurant orders, increasing costs for diners and disrupting an essential supply chain of meals. Ultimately, fee caps cost valuable jobs, tax revenues and important economic activity.”

DoorDash also responded:

“DoorDash is dedicated to supporting and empowering local businesses. We recognize the challenges Washington restaurants are facing, and the difficult decisions Governor Inslee must make as we work to stop the spread of COVID-19 and support our local communities. We remain concerned that pricing regulations like this one could result in higher costs for customers, which could lead to fewer orders for local restaurants and fewer earning opportunities for Dashers. We remain focused on finding solutions that preserve choice and ensure Washingtonians can continue to access safe and affordable food delivery.”

A similar move in Colorado would push customers away from restaurants and towards grocery stores or drive-thru fast food, further hurting small businesses. This issue is best solved by the restaurants themselves, either by negotiating with delivery services directly or utilizing alternate delivery methods. Better yet, restaurants can ask patrons (many of whom are eager to help) to help with the delivery fees. The busybodies at the state government need to stop trying to control. They are making it worse.