This is because usually, these delivery services end up taking a cut out of the total order, which means that unless restaurants charge a markup in their prices to cover this cut, they actually end up making less. To make it clearer to customers who much restaurants are making (or losing), the city of Chicago will be implementing a new rule that will show how much a restaurant is paying a food delivery service when using a food delivery app.
This means that the next time you use a food delivery app to order your food, you should see an itemized breakdown of everything, including the cost of delivery, tips, taxes, and also how much is being paid to the company that is delivering your food. This rule is expected to come into effect on the 22nd of May and will apply not just to mobile apps, but also to websites that offer delivery services.
According to Chicago Mayor Lori Lightfoot, “By providing customers with more transparency when they use these delivery services, we can further ensure not only fair business practices for our restaurants but also maintain the innovation that is essential to this industry.”