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SAN DIEGO – A bill tabled this year by San Diego Legislature Lorena Gonzalez calling for greater price transparency for grocery delivery apps is being passed to Governor Gavin Newsom’s desk.
Rep. Lorena Gonzalez, D-San Diego, speaks on the floor of the congregation in Sacramento, Calif. Thursday, September 2, 2021. (AP Photo / Rich Pedroncelli)
The bill, known as AB-286, is under review by Newsom after it was approved by the California State Assembly on Wednesday by a majority of the state’s Senate last month. If the bill is signed, the bill would require delivery platforms like GrubHub and Uber Eats to disclose to customers and restaurants a detailed breakdown of fees charged on transactions and allow restaurants to set the prices for food and drink sold through the apps.
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Gonzalez, who represents the 80th California Assembly District, said she wrote AB-286 to keep third-party apps of a higher standard.
“DoorDash was caught stealing driver tips last year and fined in California,” Gonzalez told FOX 5th on Thursday of every other wage they owe. “
Like many others, Gonzalez used these delivery apps at the height of the pandemic without knowing the fees that were ultimately imposed on local restaurants.
“It was convenient and nice, but we also didn’t know how much the restaurants were paying, sometimes up to 30%,” she said. “For our favorite restaurant, or we’re really worried about them getting back on their feet, knowing that they are paying so much can convince us to go in person or pick it up and realize that it has a real impact too this has communal restaurants. “
It passed California legislature as consumer, restaurant, and government resistance to these third-party platforms increases. In January, San Diego Mayor Todd Gloria signed an executive order limiting the fees that third-party apps can charge local businesses to help restaurants during the pandemic.
But in a statement, Geoff Vetter, spokesman for the Protect App-Based Drivers & Services Coalition, criticized AB-286.
“AB 286 is a weak attempt to harm the app-based delivery industry by creating redundant requirements and trying to expose the terms of private business-to-business contracts,” said Vetter. “This bill will not improve transparency, will not benefit consumers, and will not be endorsed by any segment of the industry.
“Legislators should focus on helping businesses while our state recovers from the pandemic, rather than adding criminal bureaucratic requirements that are of no use to anyone.”
Several San Diegans announced to FOX 5 Thursday that they are supporting AB-286 for a number of reasons:
- “I think it’s a great opportunity for people in the industry to really know what they deserve,” said one man.
- “Ultimately, the drivers deserve what they work for,” said another, “and not specific companies.”
- A third man said, “I think it’s good for you to know how much the driver is getting and how much the business is making.”
Gonzalez said the bill could add confidence to restaurants and consumers with every dollar spent.
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“That’s only fair,” she said. “Whether we as consumers are buying a house or a car, whether you are taxed on a receipt, you want to know, ‘Oh, so much is taxed and that goes to the government and so much goes to the store,’ this is just one Expansion of this type of purchase. ‘”
Newsom now has 30 days to legally sign AB-286.
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