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After City Council caps delivery charges, DoorDash adds $1.50 ‘Chicago fee’ to all orders

In November, aldermen voted to cap fees at 15% for restaurants that work with third-party delivery services such as DoorDash, GrubHub and Postmates. The new $1.50 charge from DoorDash, however, falls squarely on the customer, not the restaurant.

Doordash Associated Press

Two weeks after the Chicago City Council capped fees on third-party food delivery services, DoorDash on Tuesday announced it was adding a $1.50 “Chicago fee” to all orders placed with restaurants in the city.

“During this unprecedented time, providing the best possible service for our community is critically important,” DoorDash said in a statement to Crain’s Chicago Business.

“In select cities where lawmakers have imposed price regulations that limit our ability to work with restaurant partners, DoorDash is considering various measures to offset their unintended consequences … In some cases, this means charging customers an additional fee when they order from restaurants in their city to help ensure that we can continue to offer them convenient delivery while helping to ensure that Dashers are active and earning, and that merchants can access the services to help drive volume as dine-in remains limited.”

In November, aldermen voted to cap fees at 15% for restaurants that work with third-party delivery services such as DoorDash, GrubHub and Postmates.

The new $1.50 charge from DoorDash, however, falls squarely on the customer, not the restaurant.

The 15% fee limit, which went into effect immediately, also features a sunset provision. The 15% cap will expire 60 days after city and state dining restrictions on indoor capacity allow at least 40% capacity.