Emergency Ordinance: Temporary 15% Limit on Third-Party Delivery Service Fees

Updated September 30, 2020

The Hayward City Council voted Tuesday, September 22, 2020, to temporarily limit the fees third-party delivery services can charge local restaurants when consumers use their service to order and receive food deliveries to 15 percent.

The ordinance, which was approved unanimously on an emergency basis and is effective immediately, is intended to ease the strangle hold COVID-19 and shelter-in-place has had on the City’s restaurant sector.

Under the ordinance, fees charged to local restaurants by third-party delivery companies such as Door Dash, GrubHub, Postmates and Uber Eats will be limited to 15 percent of the order.  While the ordinance is effective immediately, there is a grace period of compliance until  Oct. 6 to allow companies to adapt to the new rule.

Restaurants who have been charged fees in excess of the 15 percent cap must submit in writing to the third-party delivery service a refund request within seven days of the order. 

Third-party delivery companies must then issue the refund within seven days of receipt of the written request.  

The cap is scheduled to expire 90 days after the City Council formally lifts the City of Hayward’s COVID-19 declaration of a local emergency.

For more information, please see the following documents:

Please monitor this webpage for the latest information on this ordinance.  City staff are working hard from home to implement these services. City staff is available to respond to questions and provide information.

For questions, please contact the Economic Development Division at econdev@hayward-ca.gov or by calling (510) 583-5545.