Denver grocery delivery companies like Grubhub and Postmates must list their receipts so customers can clearly see how much they are paying for groceries and how much they are paying for delivery and all other fees associated with their order, the city council decided on Monday.
The request is the council’s recent attempt to challenge and transform the food service industry during the pandemic, when more people relied on delivery services.
In September, it capped the amount delivery companies can charge restaurants up to 15% of their total bill – a temporary cap that expired on Monday and came after some companies billed restaurants up to 40% of their total bill.
To compensate for the lost revenue, DoorDash has introduced a “Denver Fee” of USD 2. DoorDash (and its competitors) must provide evidence of this fee as well as any other fees or commissions they charge customers. Businesses must also include a receipt stating that restaurants pay businesses a fee or commission for each order.
The Council unanimously approved the change without comment and will enter into force on December 31st.
A spokesman for Grubhub said the company has no hidden fees and all fees to customers are clearly listed on receipts.
Another ordinance passed by the city council in May and coming into effect July 1 requires restaurants and other businesses to ask customers if they want disposable items such as paraphernalia or spice packets with take-away orders instead of automatically picking them up.