Ann Arbor enacts cap on third-party delivery fees to help local restaurants
Updated May 18, 2021;
Posted May 18, 2021
Melissa Pedigo picks up an order for GrubHub from McDonalds in Ypsilanti on Thursday, May 7, 2020.Jacob Hamilton | MLive.com
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ANN ARBOR, MI — When the COVID-19 pandemic hit last year, Phil Clark says his restaurant suddenly saw 80% of food orders being routed through third-party delivery companies.
They have charged commission rates around 30%, and those fees have been a major blow for local restaurants, while big chains like McDonald’s have gotten the same services for about half the price — 15%, said Clark, general manager of Ray’s Red Hots on East University Avenue in Ann Arbor.