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Tuesday, December 29, 2020

Cleveland City Council Not Pleased DoorDash Instituted a 'Cleveland Fee' to Offset Commission Cap

Posted By on Tue, Dec 29, 2020 at 12:49 PM

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Cleveland restaurants and diners that welcomed city council's move last month to cap commissions third-party delivery services could charge operators at 15% instead of the going rate of 30% until the pandemic-related public safety measures were no longer needed were dismayed but probably not entirely shocked to find that DoorDash has instituted a 'Cleveland fee' to offset the move.

Similar measures have been taken by delivery services in other cities that have likewise instituted caps to help struggling hospitality businesses trying to stay afloat with limited capacity measures to help stem the tide of coronavirus infections.



City Council President Kevin Kelley issued a statement today on the move and promised the body would look into possible measures to curtail the feel. Enjoy:

DoorDash’s arrogance, hutzpah, and greed is astounding. They are charging an extra $1 per delivery and calling it the “Cleveland fee”.

Council passed legislation limiting how much delivery services like DoorDash could charge businesses on Dec. 9th to help the small restaurants and businesses hurt during this pandemic. The mayor signed it soon after and it went into immediate effect because it was passed as an emergency.

That same day DoorDash did an initial public offering of stock and was valued at $38 billion dollars. Today, Dec. 29th at about 11:30 am they were valued at $46.98 billion dollars. So of course, being so wealthy they decided to fleece Clevelanders and in the process hurt small Cleveland businesses.

Council will immediately look into what they can do legislatively about this corporate greed.

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