Illustration: Aïda Amer/Axios

San Francisco on Friday announced a temporary 15% cap on fees delivery companies can charge restaurants during the coronavirus crisis.

Why it matters: Food delivery has skyrocketed as residents remain confined in their homes except for essential trips. The service has become the primary source of revenue for restaurants as they can no longer serve on-site patrons.

  • Typically, third-party delivery companies charge fees to the customer and also take a commission from the restaurants.

Between the lines: While some companies have slashed fees for customers during the COVID-19 outbreak to incentivize them to order more, restaurants have complained that high fees eat into their already-reduced revenues.

Yes, but: Critics of such fee caps argue this leads to unintended consequences like lower incentives for the delivery companies to work with specific restaurants or in certain areas, change how they pay drivers, or shift fees to customers to make up for lost money (and potentially decreasing demand for delivery).

  • "In the face of this new policy shift, we are going to give restaurants the ability to pass some of these optional costs onto consumers," a GrubHub spokesperson said of the additional fees it charges restaurants for services beyond delivery, which add up to more than 15%.
  • Uber Eats said that "regulating the commissions that fund our marketplace—particularly during these unprecedented times—would force us to radically alter the way we do business, set a far-reaching precedent in a highly competitive market, and could ultimately hurt those that we’re trying to help the most: customers, small businesses and delivery people."
  • Pointing to an announcement the day before of cutting its restaurant fees by half, DoorDash added: "We are reviewing the Mayor’s order, including the legal basis for such an extraordinary unilateral action, and will respond accordingly."

Editor's note: The story has been updated with comments from delivery companies.

Go deeper

26 mins ago - World

U.S. threatens to veto UN peacekeeping in Lebanon over Hezbollah concerns

Peacekeepers with Lebanese troops in southern Lebanon. Photo: Jalaa Marey/AFP via Getty

The Trump administration is threatening to veto a resolution to extend the UN's long-standing peacekeeping mission in southern Lebanon if its mandate isn't changed, Israeli and U.S. officials tell me.

Why it matters: The U.S. is the main funder of the UN Interim Force in Lebanon (UNIFIL), which has an annual budget of $250 million. The veto threat is a tactical move, and part of a broader effort to put pressure on Iran and its proxy in Lebanon, Hezbollah.

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Global: Total confirmed cases as of 10:30 a.m. ET: 20,388,408 — Total deaths: 743,599— Total recoveries: 12,616,973Map.
  2. U.S.: Total confirmed cases as of 10:30 a.m. ET: 5,150,590 — Total deaths: 164,681 — Total recoveries: 1,714,960 — Total tests: 63,252,257Map.
  3. Business: U.S. already feeling effects of ending unemployment benefits — U.S. producer prices rose last month by the most since October 2018.
  4. Public health: America is flying blind on its coronavirus response.

Trump congratulates QAnon conspiracy theorist on GOP runoff win

Photo: Brendan Smialowski/AFP via Getty Images

President Trump on Wednesday tweeted congratulations to Marjorie Taylor Greene, a vocal QAnon conspiracy theorist who won the Republican nomination in Georgia's deep-red 14th Congressional District runoff.

Why it matters: The president's approval illustrates how the once-fringe conspiracy theory has gained ground within the GOP. Greene is among the at least 11 GOP candidates for Congress who have openly supported or defended the QAnon movement or some of its tenets, per Axios' Jacob Knutson.