SACRAMENTO – As restaurants continue to struggle financially amid COVID-19, food delivery apps like UberEats, Grubhub and DoorDash have amassed record profits while charging exorbitant fees to eateries for orders placed on their platforms. These fees are not easily accessible to restaurant owners and some have reported actually losing money on transactions. Assembly Bill 286, which would require food delivery platforms to provide a clear, itemized cost breakdown of each transaction to restaurants and customers, passed the Assembly Privacy and Consumer Protection Committee on a 9-1 vote.
“Delivery apps are keeping restaurant owners in the dark about the fees they’re charging, while these small business owners are already operating on razor-thin margins,” Assemblywoman Gonzalez said. “Meanwhile, delivery app workers believe they’ve been cheated out of their hard-earned tips. AB 286 makes sure restaurants and customers can understand exactly how much they are being charged for these services, and guarantees that customers’ tips are actually paid to the workers.”
Customers are often unaware that food prices on delivery apps cost more than what they would pay in person at the restaurant. AB 286 would provide further transparency by prohibiting food delivery companies from charging higher prices for food than what the restaurant is charging its patrons.
In November 2020, DoorDash agreed to pay $2.5 million to settle a lawsuit after allegedly keeping customer tips that were intended to go to their delivery drivers. AB 286 clearly states that delivery workers are always entitled to the full amount of the tips and gratuities added by the customer.
Assemblywoman Lorena Gonzalez represents California’s 80th Assembly District, located in southern San Diego County, including the cities of San Diego, Chula Vista, and National City. She serves as Chair of the Assembly Committee on Appropriations and Chair of the Assembly Select Committee on Latina Inequities. For more information on Assemblywoman Lorena Gonzalez, visit http://asm.ca.gov/gonzalez