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Apr 10

Commission Cap on Food Delivery Services (Supplement to the Mayoral Local Emergency Declaration)

sf.citi member companies,

I hope you all are doing well today.

I am writing to inform you that Mayor Breed, Supervisor Safai, and Supervisor Peskin have announced a temporary limit on the commissions that third-party food delivery companies can charge restaurants to 15 percent during the COVID-19 pandemic. This directive is effective immediately and will remain in effect for the remainder of the local emergency, or until businesses are permitted to reopen for dine-in service, whichever comes first.

The announcement states, “Of the approximately 4,000 restaurants in San Francisco, the Golden Gate Restaurant Association estimates 30% to 50% are still operating and offering food delivery. The California Employment Development Department and U.S. Department of Labor indicate that a large number of the statewide 2.3 million initial unemployment claims since March are service industry workers”.

Major companies impacted include Postmates, Uber (Uber Eats), DoorDash, and Grubhub. sf.citi stands with member companies impacted and we understand the negative impacts this will have on platforms, small businesses, and customers. This directive will undoubtedly raise prices for consumers and decrease earnings for essential delivery drivers, who are also affected by this pandemic. For these reasons, sf.citi remains adamantly opposed to the Mayor and Supervisors’ decision to place a cap on commission earnings for essential delivery platforms.

The full declaration will be available here when it is filed onto the City system. Read more here:

We will continue to keep you informed on this issue and work diligently on your behalf. As always, thank you once again for your continued membership.

Jen