Washington Caps Third-Party Delivery Fees

The statewide 15% limit on fees restaurants pay to delivery apps starts today.

November 25, 2020

SEATTLE—Washington Gov. Jay Inslee last week signed legislation that will put a 15% cap on third-party delivery app fees restaurants pay, Eater Seattle reports. While Seattle had such a restriction in place, the law now applies to the entire state and goes into effect today, Nov. 25. The law is similar to New Jersey’s, which was instituted in June.

“Localities can opt for something more strict if they want, but this will now be the baseline for the entire state,” said Mike Faulk, communications director for Inslee.

DoorDash spokeswoman Campbell Matthews responded to the news by saying, “We recognize the challenges Washington restaurants are facing and the difficult decisions Gov. 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.”

While the major food delivery apps have positioned themselves as supporters of local restaurants during the pandemic, many foodservice operators complain about the service provided and high commission fees on orders that leave little margin for profit. These concerns have only been aggravated by the COVID-19 crisis.

NACS Research last month released its landmark “NACS Last Mile Fulfillment in Convenience Retail” study, outlining the opportunity for convenience retailers to grow sales and expand customer reach. Download it free here.

Gov. Inslee also recently banned indoor dining until at least Dec. 14. “We recognize the challenges posed by COVID-19 to our restaurant community, and we’re grateful to third-party delivery platforms that have made it possible for Washingtonians to continue supporting local restaurants, and allowed many businesses to stay open,” the governor said.

The NACS Crack the Code Experience, which runs through December 4, offers a deep dive look into incorporating last-mile operations. Don’t miss the education session “From Last Mile to Cashless: Trends Accelerated by COVID-19” for more information regarding this trend and how it can grow your consumer base. Register now and get access to these sessions, along with 50+ education sessions, virtual showrooms and online networking within the convenience and fuel retailing industries.

Coronavirus Resources
NACS has compiled resources to help the convenience retail community navigate the COVID-19 crisis. For news updates and guidance, visit our coronavirus resources page.