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Aurora City Council approves cap on third-party delivery fees

December 10th, 2020

City of Aurora Newsletter – This is Aurora
An ordinance by the Aurora City Council to put a temporary cap on food delivery fees for third-party companies, with the goal of supporting local restaurants, will go into effect Dec. 16.
The measure, sponsored by At Large Council Member Curtis Gardner and approved unanimously by the Aurora City Council on Nov. 16, aims to help local restaurants that are relying more on food delivery during the pandemic by allowing them to keep more of the revenue they generate. It does this by limiting the commission charged to restaurants by third-party delivery companies to no more than 15% of the purchase.
“As a temporary measure during the winter months when outdoor dining can be a challenge, I consider this ordinance to be an important lifeline to help our restaurants survive,” Gardner said. “Given the restaurant capacity limits due to the pandemic and significant impact on local businesses, we believed it was necessary to temporarily limit that fee, which in some cases was exorbitant, to help the restaurants manage through this challenging time.”
“The fact that the ordinance received unanimous approval from Council and me speaks to its importance as another way to help our local businesses during the public health crisis,” added Mayor Mike Coffman. “To those who are able to purchase takeout or order delivery from a favorite local or independently owned restaurant in Aurora, I encourage you to do so.”
The cap will not affect the current fee the third-party delivery companies charge the customer, but the ordinance requires that such fee is disclosed to the consumer as a line item on the receipt. And to protect the delivery driver, the ordinance also indicates that delivery services should not garnish tips to comply with the new provisions. The ordinance will also prevent a practice by third-party delivery companies that conducts food delivery services business without the knowledge or consent of the restaurant.
The temporary cap will expire March 31, 2021, or when restaurants can have 100% unrestricted capacity, whichever occurs first.
The city of Aurora Tax and Licensing Division will be charged with the implementation of the ordinance, relying on the support of the public and restaurant owners. Complaints can be sent to [email protected] and should include contact information and backup evidence. An investigator will follow up with the reporting party.