According to The Verge, Uber is no longer able to deliver to Treasure Island because of new city regulations that cap delivery commissions.
While Uber claims the new regulations limit its ability to cover operational costs, San Francisco Supervisor Matt Haney has accused Uber of cutting off service to the low-income area in retaliation for the city’s policy.
On April 10, San Francisco Mayor London Breed issued the order to cap the commissions food delivery companies can charge restaurants. With some commission fees as high at 30 percent and the COVID-19 pandemic limiting sales, many small businesses were struggling. Now, food delivery companies can only charge restaurants up to 15 percent. The cap means that Uber might not make as much money off Uber Eats deliveries as it normally would.
Approximately a ten-minute drive from the city without traffic, Treasure Island only started receiving Uber Eats delivery options on April 3. With the new caps, however, Uber has pulled its service from the area. App users in Treasure Island received notice from Uber that the Eats availability would be discontinued.
According to Uber’s response to customers, “The Order limits our ability to cover operation costs, so we have had to revise the areas Uber Eats can deliver to in the city. Unfortunately, this means we cannot continue to serve customers in Treasure Island. The Mayor’s Emergency Order limits the commissions we charge restaurants for access to our platform and delivery services. Now, the San Francisco Board of Supervisors is proposing to make this permanent law.”
Matt Haney has called Uber’s behavior despicable. He believes the caps on commissions protect small businesses and ensure their survival during the pandemic. He believes Uber’s cutting off service to Treasure Island should be considered discrimination and retaliation.
According to Vox, Uber has a history of pushing back against local governments when regulations threaten its ability to do business. For example, there has been extreme pushback in response to AB5—the new gig economy workers’ bill. In addition to going up against local governments, Uber has also been known to encourage citizens to voice their support to lawmakers about laws and regulations that would favor the company.
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