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Baltimore Co. caps third-party food delivery fees, amid restaurant struggles

Baltimore City is proposing similar legislation
Posted at 2:46 PM, Dec 22, 2020
and last updated 2020-12-22 23:11:17-05

TOWSON, Md. — Baltimore County Executive Johnny Olszewski on Monday issued an executive order that prohibits third-party food delivery companies from charging restaurants more than 15 percent of a customer's bill.

Usually the fees can range upwards of 30 percent per order, leaving restaurants with little to no profit.

Under the order companies are barred from reducing the compensation owed to their delivery drivers, to make-up for whatever losses the company may endure as result of the executive action.

“By capping the fees that these third party delivery services can charge, we can ensure more of our money goes where it belongs: in the pockets of our community’s restaurant owners and their staff, rather than in the bank account of a corporate entity from hallway across the country," said Olszewski.

Since the pandemic began, the County has approved more than $13 million in grants for more than 300 County restaurants.

A similar bill was introduced last week in Baltimore City that will be considered at the January 11 council meeting.

READ MORE: City leaders propose legislation to cap third-party food delivery fees, amid restaurant shutdown