NDC opposed AB 286. AB 286 institutes a Hidden Tax that hurts California Consumers, Restaurants, and Drivers and would reduce earning opportunities for hundreds of thousands of app-based drivers by aiming to Arbitrarily Cap App-Based Food Delivery Fees. Fees on restaurants and customers are carefully balanced to reflect the benefits to each party: fees on restaurants help pay for marketing, payment to drivers, customer service and other services that help restaurants gain customers and grow business; and fees on customers reflect the convenience and value of the delivery service while also ensuring fair payment to drivers. Arbitrarily capping fees paid by restaurants will force prices to rise on consumers in order to ensure adequate revenues to provide fair payment to drivers, for marketing and advertising that helps restaurants gain customers, for customer service, and technology costs of the platform. For instance, a 15% cap on a typical $20 food order would leave only $3 to pay the driver as well as for the costs for marketing, customer service, technology and other expenses.
Related story regarding NDC and our stand on AB 286:
California’s AB 286 is a hidden tax on consumers and small businesses. The legislature should vote NO