It is no secret that the pandemic has unleashed new examples of corporate greed. Here in the CLE, DoorDash is Example #1. Here’s what I’m doing about it.
DoorDash is a 3rd-party food-delivery “gig” company that launched in Palo Alto, CA in early 2013. During the COVID-19 pandemic, DoorDash became the fastest-growing meal-delivery service in the country. It is now valued at about $50 billion.
On the very day Cleveland City Council passed an ordinance designed to help small businesses, drivers, and consumers, DoorDash had its initial public offering (IPO). It instantly made them a multi-billion-dollar, publicly traded corporation.
Now, this newly-minted corporation has become exceedingly rich – in part, due to the COVID 19 pandemic. At the moment of its IPO in late 2020, DoorDash was valued at $46.98 billion.
In response to this greed, Council passed legislation to limit the fees DoorDash and others can charge our local restaurants to 15% – simply in an effort to help these small businesses survive. This limit is less than the typical 30% charged. Mayor Jackson signed the law soon after and it went into immediate effect because it was passed as an emergency.
Then, trying to circumvent our local law, DoorDash started charging customers an extra $1 per delivery and calling it the “Cleveland fee” – fleecing our residents big time. DoorDash’s arrogance, gall and greed is simply astounding.
DoorDash is mistaken if they think we will sit idly by and allow them to continue to overcharge Cleveland residents to line their own pockets. As Mayor, I will work with City Council to continue to investigate options to rein in corporate greed. Stay tuned.