Restaurant owners in Clark County say that third-party delivery apps are not complying with a new temporary cap on fees. Last month, Clark County approved a 15 percent cap on fees during the coronavirus pandemic. Restaurant owners say that as customers turn to delivery, they relied on third-party apps such as GrubHub, Uber Eats, and Doordash to provide that service. But the 30 percent fee essentially cut out their profits.
Colin Fukunaga, who owns FukuBurger, says that GrubHub in particular is now charging marketing fees. He tweeted a receipt that shows a 20 percent marketing fee in addition to a 10 percent fee for delivery. The restaurant, not the customer, pays that fee.
If you are a restaurant in @ClarkCountyNV and using @Grubhub, make sure you are checking your statements. They are not following the county ordinance 15% cap. 20% marketing and 10% delivery is 30%! Cc @reviewjournal @KTNV @News3LV @vegasnewsnow @VitalVegas pic.twitter.com/nOeMmui5IQ— Fukuburger (@fukuburger) September 2, 2020
A spokesperson for GrubHub tells the Las Vegas Sun it is complying with the delivery fee cap. The ordinance does not mention marketing or advertising services, so the company will continue to charge for those services.
“The Clark County ordinance only applies to fees for delivery services and does not place any cap on marketing or advertising services that local restaurants choose to pay to drive more orders that are unrelated to our delivery services. We have always been a marketing engine first and foremost that allows independent restaurants to compete against enterprise brands and restaurant chains for diners,” a GrubHub spokesperson tells the Las Vegas Sun.
The county’s Department of Business License continues to receive and investigate complaints related to overcharges. Clark County Commissioner Tick Segerblom, who sponsored the ordinance, says he is considering a new ordinance that would lower the fee to 10 percent.