They propose to put a limit of 15% to those who can charge for each home delivery
Los Angeles City Councilman Mitch O’Farrell decided to put a stop to the excessive charges that phone application companies make to restaurants for delivering food at home, by setting a limit to the percentage that they can apply.
In a virtual meeting with newspaper editors The opinion, noted that filed a motion to require the city attorney, an ordinance that makes it illegal for these companies to charge more than 15% for orders on-line during the public health emergency by COVID-19.
"We are surprised that most charge around 30% or up to 40% to restaurants, and they already did it before COVID-19, but it became more apparent when Uber Eats launched its application for the delivery service," said the councilor.
He said Uber Eats is listed on the exchange; And last year, a class action lawsuit was filed for price speculation in New York against companies operating through apps.
“This has come to light during the pandemic. Restaurants cannot survive by paying 30-40% to these companies"
O'Farrell, who before joining the Los Angeles Council, worked for eight years in the restaurant industry, said that restaurants earn between 1 to 5%. "So it's not easy for restaurants in any economy, much less during COVID-19."
In particular, he noted that small merchants are held hostage, as they often unwittingly promote the sites of food delivery app companies on their own websites.
"What happens is that these companies require the restaurant to pay 30% of the customer's account," he said.
What is worse is that they do not give drivers 100% of the tip that the customer pays.
“Nor do they necessarily provide them with gloves and masks; And they leave them to fend for themselves in the midst of this health crisis. ”
So he felt that it is reasonable to carry out what San Francisco and New York have done, to impose a limit on the charge that can be charged to a restaurant for delivery service.
"Based on the research done, 15% is reasonable. And we will also require that drivers be better protected, and that they receive 100% of their tip."
Councilman O'Farrell revealed that as the motion progresses on the Council, there is strong lobbying to tear it down on the part of the app companies.
"I haven't seen lobbying that strong since we regulated e-cigarettes."
Health and business
In announcing Los Angeles County, that the order stay home It will run for three months until the summer to prevent the spread of the virus, he said there will not necessarily be a conflict between maintaining health and reopening business safely.
"I would encourage those who have to earn a living in a clandestine economy, no matter what they do, to wear gloves and masks to protect themselves.. I'm not promoting that at all, but I want them to take all possible precautions if they do, because surely no one wants to catch or spread the virus. ”
Help for tenants
The councilor recalled that on March 27 they approved that tenants be given up to 12 months to pay rents, which they could not cover due to the loss of employment due to the pandemic, but regretted that they do not have the authority to forgive rents and mortgages .
"What we have done in the Council, is to pass resolutions that request federal and state assistance to guarantee forgiveness of rent and mortgage, because I have the feeling that within six and eight months, it will be very difficult to pay for those who do not have a entry".
And established that "we need a federal government bailout for tenants and mortgages who can't pay because they lost their jobs"
On the other hand, the councilor is the author of a motion to allocate one million dollars to a subsidy for the Emergency Income Assistance program that will help those who cannot pay the rent due to the COVID-19 crisis.
"Requests will be made on-line, and as soon as the platform is ready, we will make the announcement with the details. We hope it will be as soon as the end of May. "
The money will be paid directly to the landlord, and it is calculated that it will be half the cost of the rental, for a period of between three to six months.
"Regardless of immigration status, everyone can qualify for this help"He specified.
Ugly year
The councilor acknowledged that the City of Los Angeles is in a critical situation, in terms of the budget due to the fall in revenue caused by COVID-19, for which he said that the table should be cleaned and what is most important for the residents.
"During a budget crisis like the one we are going to face, we want to have safe neighborhoods and families fed and under cover; as well as critical services without interruption"
The good news, he said, is that the emergency reserve fund, before COVID-19, was in good condition.
Asked about Mayor Eric Garcetti's proposal to cut workers' wages, he said they may have to, but he hopes they are not as drastic as they were ten years ago during the 2008 recession.
