Title
Staff Report for Consideration of a Temporary Limit on Fees Charged by Third Party Food Delivery Companies to Support Restaurants in San Leandro during the COVID-19 Pandemic
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff requests that the City Council provide comments and direction on a temporary cap on the fees charged by third-party food delivery companies. Based on such comments and feedback, the City Manager, acting as the City's Director of Emergency Services, may issue a declaration establishing rules and regulations under his emergency powers to enact such a limit. The benefits and risks of such a declaration are discussed further below.
In addition, Economic Development staff will continue conversations with the food delivery companies about proactive measures they can take to assist San Leandro restaurants. Staff will also continue to work in a variety of ways to help restaurants and food businesses to reopen, better connect with their customers, access resources, and be more sustainable and successful long-term.
BACKGROUND
Since the initiation of the Alameda County Shelter-in-Place order on March 17, 2020, many San Leandro businesses, including restaurants, caf?s, and other food and beverage businesses, have been closed, or limited to pick up service only, in order to protect employees and customers and limit the spread of the COVID-19 virus. The orders' restrictions have devastated local businesses, particularly small service, food and other direct customer serving businesses.
During this time, online ordering and delivery of food has become a critical lifeline to many restaurants and food businesses. In order to assist with the ordering and delivery process, many food businesses utilize third party food delivery companies, such as DoorDash, GrubHub, Postmates, and UberEats. These companies generally provide a means for businesses to market themselves, list their menu, receive orders online, and arrange for delivery or pickup, al...
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