While food delivery services aren’t new, now that much of the world is on lockdown, these businesses have become more important than ever. However, there are some restaurants and businesses who are resisting using food delivery services simply because it actually ends up losing them money.
This is because usually, these delivery services end up taking a cut out of the total order, which means that unless restaurants charge a markup in their prices to cover the cut, they actually end up making less money. So to make it clearer to customers how much restaurants are making (or losing), the city of Chicago will be implementing a new rule that will show how much a restaurant is paying a food delivery service when using a food delivery app.
So the next time you use a food delivery app to order your food, you should see an itemized breakdown of everything, including the cost of delivery, tips, taxes, and how much is being paid to the company that is delivering your food. This rule should come into effect on the 22nd of May and will apply to mobile apps and websites that offer food delivery services.
Chicago Mayor Lori Lightfoot says, “By providing customers with more transparency when they use these delivery services, we can further ensure not only fair business practices for our restaurants but also maintain the innovation that is essential to this industry.”