Montebello Caps 3rd Party Food Delivery Fees

At its January 13 Council meeting, the Montebello City council voted unanimously to adopt an Urgency Ordinance establishing a temporary limit on the charges imposed on local retail food establishments by third-party delivery services during the COVID-19 pandemic and for 90 days after the County/State Order prohibiting on-premises dining is lifted.
 
The vote was modeled on actions already adopted by the City of Los Angeles and other local municipalities and was introduced by a motion from newly elected Councilmember Scarlet Peralta. Montebello’s Urgency Ordinance makes it unlawful for third-party food delivery services to charge a covered establishment commissions or costs that total more than 20 percent (20%) of the purchase price of each online order and fees, commissions, or costs included in a delivery fee, and delivery fees that total more than 15 percent (15%) of the purchase price of an online order.  The Ordinance is in effect and will remain so until 90 days after the current county and state order prohibiting on-premises dining is lifted.
 
“Our local businesses are fighting to survive, and by endorsing this cap on surcharges we are protecting our residents, local restaurant owners, and delivery drivers,” said Councilmember Peralta.  “It is my hope that this measure will provide some financial relief to those who are relying on food delivery services during the pandemic and current stay-at-home mandates.”

Restaurant owners whose fees surpass the maximum charges allowed by this ordinance may contact Michael Chee at the City of Montebello to obtain assistance with communicating about this temporary cap with their 3rd party food delivery providers: (323) 887-1200 or mchee@cityofmontebello.com.