California just passed a new law that’s making waves in the delivery app world. Uber Eats, DoorDash, Grubhub—they all have to start showing clearly what fees they’re charging, not just to customers but to restaurants too. This bill, dubbed SB 1490, is all about transparency, letting everyone see exactly where their money goes when they hit ‘order.’
When you order through these apps, it might not cross your mind that restaurants are getting hit with fees too. With all the charges stacking up on your bill, you’d think some of that cash ends up in the restaurant’s pocket. But more often than not, that’s just not how it works. Most of that money? It winds up with the delivery service.
Often, there is a list of fees provided at the checkout screen when placing an order for your favorite burger or fried chicken, but customers are not privy to what the restaurant itself is paying. With the newly proposed bill, customers will also be able to see what the restaurant is being charged by the delivery app, on top of the fees that they have to pay as the customer.
Supporters of the bill believe that it is good to give full transparency to the people who are ordering food. This allows them to be fully aware of where their money is going. Opponents have stated that while transparency can be important, this bill could force companies to give away valuable business information to competitors, who can use the apps to gain a better knowledge of rival businesses.
This bill was drawn by Democratic Senator María Elena Durazo. Senator Durazo is looking for more transparency in the food delivery sector. Many people complain that delivery apps are often confusing and that they end up getting charged more money than what it originally seemed. This can be frustrating for those who simply wish to order a quick meal, as delivery fees on these apps add up heavily. Senator Durazo brought the bill forward in order to remove the mystery surrounding fees and added charges in food delivery.
This bill could not only help consumers but also the restaurants themselves, as more people understand the money that the restaurants have to pay through deliveries. Consumers will have a full understanding of all the transactions through food delivery apps, which get many complaints about being unnecessarily confusing.
But the bill goes even further in regards to helping restaurants with transparency. It has the potential to also ensure that delivery apps cannot punish a restaurant for not using their services. They will also have to give out the restaurant’s contact information to the people who are ordering food from that location.
The bill also attempts to guarantee that restaurants can analyze and handle the information provided by delivery firms by giving them access to the support resources they need, such as experts or legal aid.
Senator Gurazo’s proposed bill hopes to ensure that there is more fairness in the food delivery industry, allowing transparency across the board. This bill looks to be a major win for the consumers of apps like Uber Eats, DoorDash, or GrubHub.
