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File #: 23-774    Version: 1 Name:
Type: Minute Order Status: Action Item
File created: 3/15/2023 In control: City Council Meeting Agenda
On agenda: 5/22/2023 Final action:
Title: CC - ACTION ITEM: Discussion and Direction to Staff Related to Limitation on Third Party Food Delivery Fees
Attachments: 1. 2023-05-22_ATT 1_Exhibit A to 29th Supplement.pdf, 2. 2023-05-22_ATT 2_Third Party Fee Limitations Feedback March 2023.pdf, 3. 2023-05-22_ATT 3_Uber Letter.pdf, 4. 2023-05-22_ATT 4_Door Dash Email.pdf
CC - ACTION ITEM: Discussion and Direction to Staff Related to Limitation on Third Party Food Delivery Fees

Meeting Date: May 22, 2023

Contact Person/Dept.: Jesse Mays, Assistant City Manager

Phone Number: (310) 253-6000 City Manager's Office

Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]

Attachments: Yes [X] No []

Commission Action Required: Yes [] No [X] Date:
Commission Name:

Public Notification: (E-Mail) Meetings and Agendas - City Council (05/18/23)

Department Approval: John Nachbar, City Manager (05/18/23)


Staff recommends the City Council discuss and direct staff related to a limitation on third party food delivery fees.


On October 30, 2020, based on City Council's direction at its October 26, 2020 meeting, the City Manager issued the Twenty-Ninth Supplement to Public Order, during the COVID-19 local emergency (Local Emergency), which temporarily limited third party food service fees, effective November 6, 2020. The limitation was that no third party food delivery service may charge a retail food establishment a delivery fee that totals more than 15% of the purchase price of an online order, or any combination of fees, commissions or costs, that is greater than 5% of the purchase price of each online order, as detailed in Exhibit A to the Order (Attachment 1).

The Thirty-Fifth Supplement to Public Order issued on March 25, 2021 continued the fee limitations on third party food delivery services to the end of the Local Emergency. The City Council terminated the Local Emergency effective April 1, 2023, at which point the fee limitations also terminated.
At its meeting on February 27, 2023, the City Council directed staff to obtain input from Culver City restaurants regarding this issue before returning to City Council for additional direction on whether to make the limitat...

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