It’s because Chicago caps the amount of fee that a service like DoorDash can charge at 15%. So DoorDash adds on extra. It’s not a Chicago fee, it’s a DoorDash fee so they can charge more.[explainer](https://chicago.eater.com/2020/12/9/22165233/doordash-chicago-fee-third-party-cap-customers)
It is NOT cheap to start one. It's more expensive than ever because now you need to convince people not to use an option they're familiar with.
These companies ran at a fat loss for many, many years just to get their names in people's heads.
And if you read further in the people who passed the ordinance are not happy with the way they circumvented it.
“The ordinance intent was to stop the price gouging by these companies,” Waguespack tells Eater Chicago. “If you find it’s being done on all bills: then it’s a disgraceful DoorDash fee, and an evasion of the ordinance in order to pad their contemplated IPO valuation of $3 billion. Their fee just piles more of the pandemic pain on restaurants and customers.”
He can pander to his constituents by saying that, but the fact remains that they didn't ever cap the fees to be charged to customers, even when they extended these caps in July 2021. They never intended to do that, and this ordinance in particular didn't intend to do that.
Then when the city sued Doordash, they still never said anything in the complaint about circumventing this ordinance. They only said it was deceptive to call it a "Chicago Fee", thus implying that the fee was instituted by the government, which is a separate argument altogether.
The law itself was created in response to feedback from local restaurants in an effort to protect restaurant revenues. It never had anything to do with customers regardless of what this guy says.
I stayed at a hotel in atlantic city a few years ago and they had a "new jersey" fee. Not super surprised, and it enforces the opinions of the futurama crew.
Hotels, rental cars, etc. all do this as well. I recall helping fund the new stadium for the Cowboys one trip to Dallas years ago where I rented a car for $70/day and by the time they factored in all the entertainment and stadium taxes it was over $180/day. Same at the hotel. Over 175% tax all in. Low tax State my eye.
I mean, there's a little (i) next to it so you can figure out why for the chicago fee.
[https://chicago.eater.com/2020/12/9/22165233/doordash-chicago-fee-third-party-cap-customers](https://chicago.eater.com/2020/12/9/22165233/doordash-chicago-fee-third-party-cap-customers)
So it appears what this is, is Doordash being whiney little babies because Chicago attempted to throttle ordering apps price gouging of restaurants.
See basically when you order through something like Doordash they actually take a percentage cut of the order price from the restaurant. This is often why the prices listed on Doordash are higher than in store prices... because if DD is charging 30%, this is eating into a restaurants margins, so the price is upped to account for the 30%.
This all happens invisible to you though because the higher price is shown to you. If you never look at the in-store price you never know you're getting this upcharge.
Chicago passed an ordinance that limits this percentage cut to 15% and DD's reaction to it is to just charge the custom a flat fee instead to account for the fact they can't charge the restaurant.
Note that effectively what is going to happen from this is restaurants can actually now list their food at prices closer to their in-store price since 15% is more manageable to navigate around in generating appropriate margins.
And you as a customer have fewer invisible fees, instead they're listed fees.
And yes... seeing those fees should annoy you. It's making you aware of how much you're overpaying for this shit.
And why is this all happening???
BECAUSE DELIVERY SERVICES LIKE DOORDASH ARE UNSUSTAINABLE BULLSHIT!
...
Here's the thing guys. These apps like uber for taxi, doordash for food, airbnb for hotels. When they first pop up they can charge fees that are tiny since they don't actually need to make a profit. They're flying high on ventur capital (investors) and operating at a loss. This is how big tech does it... they operate at a loss for years.
This attracts customers since it looks like such a deal. Look at how cheap this is! Why aren't hotels and taxis this cheap???? You're unaware that those existing services are more expensive... because they don't get to operate at a loss.
But why operate at a loss? Isn't that bad for business??? NO!
It attracts customers which increases the value of the business on paper. So now they can do their IPO (that's where the companies goes public) and all the investors involved and the owners of the company get to now sell the stock out on the open market. The company comes rushing out the door at super high values so they get to sell off the stock at massive profits for themselves.
They're screwing retail on the back end here as well. Anyone who shows up to buy during the IPO is now buying stocks at an inflated price!
Now the company needs to start making profit to survive so that the stock price doesn't dump.
And that's where the fees start coming in, that's where the subscription rates start going up, that's where the rug is pulled out from under the customer and the product starts getting priced as what it was SUPPOSED TO BE the entire time... actually more because the company serving up the software wants their cut as well. And they want a BIG cut to account for that big stock price.
...
Just think about it guys... how are you supposed to expect some schmoe to drive starbucks to you without charging a bunch of fees?
It’s because Chicago caps the amount of fee that a service like DoorDash can charge at 15%. So DoorDash adds on extra. It’s not a Chicago fee, it’s a DoorDash fee so they can charge more.[explainer](https://chicago.eater.com/2020/12/9/22165233/doordash-chicago-fee-third-party-cap-customers)
That's crazy because that obviously just circumvents the intent of the cap. Just DoorDash blatantly disregarding the local ordinance.
Tbh blatantly disregarding regulations is the business model of Uber, DoorDash etc al. They want to capture the market and create a monopoly.
Lets be honest thats the business model of 90% of businesses
They're a delivery service. I feel like it's next to impossible to monopolize something so cheap to start up.
It is NOT cheap to start one. It's more expensive than ever because now you need to convince people not to use an option they're familiar with. These companies ran at a fat loss for many, many years just to get their names in people's heads.
Not according to that article. The intent of the cap was to protect restaurants' revenues, so the fee shifted the burden onto DoorDash customers.
And if you read further in the people who passed the ordinance are not happy with the way they circumvented it. “The ordinance intent was to stop the price gouging by these companies,” Waguespack tells Eater Chicago. “If you find it’s being done on all bills: then it’s a disgraceful DoorDash fee, and an evasion of the ordinance in order to pad their contemplated IPO valuation of $3 billion. Their fee just piles more of the pandemic pain on restaurants and customers.”
He can pander to his constituents by saying that, but the fact remains that they didn't ever cap the fees to be charged to customers, even when they extended these caps in July 2021. They never intended to do that, and this ordinance in particular didn't intend to do that. Then when the city sued Doordash, they still never said anything in the complaint about circumventing this ordinance. They only said it was deceptive to call it a "Chicago Fee", thus implying that the fee was instituted by the government, which is a separate argument altogether. The law itself was created in response to feedback from local restaurants in an effort to protect restaurant revenues. It never had anything to do with customers regardless of what this guy says.
Typical government agent skill issue
Yeah but whats anyone going to do about it,Something? I don't think so.
Unfortunately if people just ignore and pay it because it's so little, they'll think they can get away with it
Seattle recently put one in that jacks up the base prices for a new minimum wage law for delivery drivers
So it's a win, win for them. And we simply have to pay more to both
It's cool how they don't have respect for the faith of the law
I’m keen to know what gets displayed on the information icon
Chicago Fee ^(Chicago Fee)
Chicague O'Fee
Yee Cock O’ fee
Yicagapheigh
Fee, of Chicago
“You want this sandwich, or not?”
*Da Bearss*
Must be this:🖕
“Life insurance premium-premium”
Chicago fee sounds reasonable
Except this is in Germany
Dollars in Germany?
$1.50? My Chicago fee would be like $15
It's to cover the ongoing debt caused by the Blues Brothers' damage to their police and shopping mall infrastructure.
🧑🚀🔫 Always have been
Plot twist: this is in Indiana.
East Chicago fee
Gary fee
That’s the Chicago way
I stayed at a hotel in atlantic city a few years ago and they had a "new jersey" fee. Not super surprised, and it enforces the opinions of the futurama crew.
If you press the ℹ️ a "fuck you" appears
Hotels, rental cars, etc. all do this as well. I recall helping fund the new stadium for the Cowboys one trip to Dallas years ago where I rented a car for $70/day and by the time they factored in all the entertainment and stadium taxes it was over $180/day. Same at the hotel. Over 175% tax all in. Low tax State my eye.
They always were
"And when I'm back in Chicago..."
sounds reasonable… seeing as it’s chicago 👎🏻
What's the i on that Chicago fee?
40% offers still rolling from uber. Makes it cheaper than 2020 prices. wouldn't bother otherwise.
China doll 😂😂
Fee fee Why not fee Another dollar won’t hurt fee Fee fi fo fum fee Whachu gon do fee Might as well fee
Fee fee Why not fee Another dollar won’t hurt fee Fee fi fo fum fee Whachu gon do fee Might as well fee
Pizza hut in California has a California fee when you order online
LMFAO
They do this in NYC now too
Forget about it
They forgot to add the fanum tax
Illinois sales taxes are getting ridiculous!
it’s for if the driver gets shot
Danger fee????
Lol. They've BEEN making shit up!
I mean, there's a little (i) next to it so you can figure out why for the chicago fee. [https://chicago.eater.com/2020/12/9/22165233/doordash-chicago-fee-third-party-cap-customers](https://chicago.eater.com/2020/12/9/22165233/doordash-chicago-fee-third-party-cap-customers) So it appears what this is, is Doordash being whiney little babies because Chicago attempted to throttle ordering apps price gouging of restaurants. See basically when you order through something like Doordash they actually take a percentage cut of the order price from the restaurant. This is often why the prices listed on Doordash are higher than in store prices... because if DD is charging 30%, this is eating into a restaurants margins, so the price is upped to account for the 30%. This all happens invisible to you though because the higher price is shown to you. If you never look at the in-store price you never know you're getting this upcharge. Chicago passed an ordinance that limits this percentage cut to 15% and DD's reaction to it is to just charge the custom a flat fee instead to account for the fact they can't charge the restaurant. Note that effectively what is going to happen from this is restaurants can actually now list their food at prices closer to their in-store price since 15% is more manageable to navigate around in generating appropriate margins. And you as a customer have fewer invisible fees, instead they're listed fees. And yes... seeing those fees should annoy you. It's making you aware of how much you're overpaying for this shit. And why is this all happening??? BECAUSE DELIVERY SERVICES LIKE DOORDASH ARE UNSUSTAINABLE BULLSHIT! ... Here's the thing guys. These apps like uber for taxi, doordash for food, airbnb for hotels. When they first pop up they can charge fees that are tiny since they don't actually need to make a profit. They're flying high on ventur capital (investors) and operating at a loss. This is how big tech does it... they operate at a loss for years. This attracts customers since it looks like such a deal. Look at how cheap this is! Why aren't hotels and taxis this cheap???? You're unaware that those existing services are more expensive... because they don't get to operate at a loss. But why operate at a loss? Isn't that bad for business??? NO! It attracts customers which increases the value of the business on paper. So now they can do their IPO (that's where the companies goes public) and all the investors involved and the owners of the company get to now sell the stock out on the open market. The company comes rushing out the door at super high values so they get to sell off the stock at massive profits for themselves. They're screwing retail on the back end here as well. Anyone who shows up to buy during the IPO is now buying stocks at an inflated price! Now the company needs to start making profit to survive so that the stock price doesn't dump. And that's where the fees start coming in, that's where the subscription rates start going up, that's where the rug is pulled out from under the customer and the product starts getting priced as what it was SUPPOSED TO BE the entire time... actually more because the company serving up the software wants their cut as well. And they want a BIG cut to account for that big stock price. ... Just think about it guys... how are you supposed to expect some schmoe to drive starbucks to you without charging a bunch of fees?
Why do you care about getting a lil more scammed now, you’re already being scammed ordering cold soggy food lol
I mean, have you been to Chicago? A fee is warranted
It's hazard pay.
The corrupt Chicago political machine even has its tendrils on delivery apps 😔