Seattle City Council approves bill requiring delivery apps to sign agreements with restaurants

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Seattle City Council passed law on Monday requiring food delivery apps to sign agreements with restaurants instead of listing restaurants on the apps and taking orders without permission.

Council President M. Lorena González, who sponsored the law, said it will protect restaurants, make things easier for delivery app drivers, and provide more reliable service to customers. It will ensure that restaurants can control the “guest experience,” said González.

The vote was 8-0. Mayor Jenny Durkan has not yet reviewed the law to see if she will sign it or make it law without her signature, her office said.

Council officials noted that the law could result in some restaurants paying delivery fees that they don’t pay now, potentially less work for drivers and fewer options for customers.

González said restaurant industry groups like the Seattle Restaurant Alliance supported the measure, and worker groups and delivery apps have been consulted. The delivery apps Grubhub, Postmates, and Uber Eats didn’t comment immediately.

Brianna Megid, a spokeswoman for the delivery app DoorDash, said restaurants should be able to make decisions that affect their businesses. DoorDash removes restaurants upon request, she said.

Under the status quo, delivery apps can use online menus and other information to list restaurants without permission. Restaurants may not even know they’re listed. According to the council, app drivers place orders on behalf of customers who pay the app delivery charges.

That will not be allowed under the new law. There must be agreements that restaurants can cancel at any time that authorize the apps to coordinate deliveries.

As part of such arrangements, which many restaurants already have, restaurants review their menus and other information. Customers will use the apps to place orders at the restaurants that pay the apps’ delivery charges.

The delivery app sector has grown in recent years, according to a presentation by the city council, with pandemic rules adding additional momentum.

Listing restaurants in the apps without any agreements can create problems for restaurants, drivers and customers, including incorrect menu items, prices and delivery times, according to a city council executive summary. When customers encounter bugs, they may blame drivers and restaurants, which can lead to poor reviews and lost income.

Seattle law will allow the city to penalize apps with $ 250 per violation and use that revenue to support small restaurants.

The law is due to come into force on September 15th. The council on Monday did not approve any new funds for educating restaurants about the law, nor for the city’s finance department, which will enforce it.

“Based on California’s experience after similar laws were passed,” the apps are expected to be largely compliant, the employee summary added.

Seattle’s law aims to protect restaurants, but it could also cut delivery app drivers, many of whom are colored, with less work, according to a race and social justice assessment by city council officials. At the same time, “it will benefit workers by reducing potential conflicts with restaurants,” the review said.

Daniel Beekmann:
206-464-2164 or dbeekman@seattletimes.com; on Twitter: @dbeekman. Seattle Times reporter Daniel Beekman covers the Seattle city government and local politics.