TIGARD, OR -- Federal lawmakers have targeted hidden fees consumers pay for flights, hotel stays and concert tickets. One Oregon Congresswoman wants to add food delivery apps to the list.
Rep. Andrea Salinas (D-OR6) says American families spend billions every year on third-party food delivery apps like DoorDash and Uber Eats, "The average American ordered takeout about once per week, and spends about $33 on that order. But what I think a lot of people don't know is about 35% of that cost is in hidden fees." She says, "Less than two-thirds of what you're actually paying for delivery is going back to support the restaurant."
Tigard Mayor Heidi Lueb says many of her city's 3,400 businesses are restaurants, "And a lot of them are struggling. And when they get orders from all of these apps, it really is cutting into their business and they're not able to break even; they're even losing [money], just to be able to get their name out there and get that name recognition."
Brenda Schmidt owns the Great Greek restaurant in Tigard and says she charges customers more when they order through a third-party app, but it's still not enough to cover the additional cost, "If things continue to be this way, it could be as bad as we have to shut the apps off and let off people, and have fewer employees, and people lose jobs that way, just to save costs." She told Rep. Salinas customers who order directly from her restaurant - whether to dine-in, take-out or for deliver - pay less, "I think if more people knew that was an option - take care of your local businesses and take care of your local restaurants - more of us will survive."
Salinas says she's not necessarily calling for the fees to be abolished, just that they're disclosed to customers who may otherwise believe the money they're spending is staying local, "There are some hidden fees that don't have any legitimacy. And so those are the kinds of fees - and we don't know where they're going exactly, except perhaps to profit." She adds, "Delivery apps are making a killing from what might be better known as junk fees. And we're talking billions of dollars every year. They're eating away at the margins of local restaurant owners."
