Title
Introduction of Ordinance Re-Adopting Alameda Municipal Code Section 6-62 (Third-Party Food Delivery Services) of Article XVIII (Fair Housing and Tenant Protections) of Chapter VI (Businesses, Occupations and Industries) to Continue Placing Limits on Charges Imposed by Third-Party Delivery Services; Define Core Product Offering to Mean a Service; and Other Amendments. (Base Reuse and Economic Development 10061810)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda's (City) Third-Party Food Delivery Services Ordinance (the "Ordinance", Exhibit 1, AMC Section 6-62) was adopted on September 15, 2020, during the COVID-19 pandemic. The Ordinance placed a 15% cap on the fees and surcharges levied on Alameda restaurants using third-party food delivery services such as Uber Eats, DoorDash, and Grubhub. This ordinance sought to alleviate the high fees levied at Alameda restaurants during a time when nearly all food sales were delivery-based. The Ordinance was extended March 7, 2023 and sunset on May 1, 2025.
Given the importance of maintaining a vibrant restaurant industry in Alameda, the continued challenges it faces post-pandemic, and the current economic uncertainties, staff is requesting the Ordinance to be re-adopted as it was previously approved, to extend it for one year. This will allow staff time to engage with the local restaurant community to better understand the current context of the third-party food delivery services and its impacts on retail food establishments. After its review, staff may recommend amending the Ordinance next year.
BACKGROUND
Due to the mandatory, statewide shelter-in-place order during the COVID-19 pandemic, many Alameda restaurants, and their consumers, came to rely on third-party food delivery services, online platforms that facilitate food delivery and pick-up. These companies provide a variety of services, including food delivery, website i...
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