Boston’s Debate on Proposed Food Delivery Tax: What’s at Stake?

Boston Considers 15-Cent Delivery Fee on Apps Like DoorDash, Sparking Debate

Published: March 22, 2025

Boston is grappling with a potential new fee on food delivery apps like DoorDash, Grubhub, and Uber Eats. As of today,March 22,2025,the Boston City Council is weighing a 15-cent delivery fee per order,igniting a fiery debate over who will ultimately bear the cost: the companies,the consumers,or the local restaurants. The proposed fee is tied to Mayor Michelle Wu’s “road safety and accountability for delivery providers ordinance,” initially aimed at curbing reckless driving by delivery personnel.

The heart of the matter lies in balancing public safety and economic impact. The city aims to rein in delivery drivers who, according to numerous reports, “flout traffic rules,” contributing to congestion and safety hazards. However, the proposed solution—a new fee—is facing strong headwinds from the restaurant industry and fiscal watchdogs.

The Proposed Ordinance and the Contentious 15-Cent Fee

Councilor Sharon Durkan champions the 15-cent fee as a necessary measure. In a statement, Durkan asserted, “The 15-cent delivery fee is a necessary step to address the increased strain delivery traffic places on our streets. This fee ensures we can effectively implement the ordinance and acknowledge the real costs these services impose on Boston.”

Councilor Gabriela Coletta Zapata, who leads the subcommittee reviewing the ordinance, confirmed that the fee is “currently on the table as a possible addition” to help cover enforcement costs. “It would theoretically be a 15-cent per order fee that would help cover costs of the enforcement of the ordinance,” Coletta Zapata stated.

Restaurant Industry Opposition

The Massachusetts Restaurant Association (MRA) has emerged as a vocal opponent. Stephen Clark, president and CEO of the MRA, voiced serious concerns in a letter to Mayor Wu and the City Council. “This will make delivery more expensive in the city and discourages consumers from ordering and doing business with restaurants in Boston,” Clark wrote.

Clark’s letter further highlights the MRA’s broader concerns with the mayor’s ordinance,predicting “rising delivery costs,” “increased red tape,” and a potential “threat to restaurant and consumer privacy” due to data-sharing requirements. The association believes that enforcing existing traffic regulations would be more effective in alleviating congestion than imposing new fees and regulations.Clark elaborated, “The proposed ordinance…does little to help the problem at hand and will only hurt our small local businesses and consumers who rely on third-party deliveries.”

The MRA’s stance reflects a broader anxiety within the restaurant industry, which has already navigated the economic challenges of the COVID-19 pandemic and fluctuating consumer habits. Adding another layer of cost could possibly stifle recovery and growth.

Mayor Wu’s Viewpoint and the City’s Rationale

While distancing her office from the specific 15-cent fee proposal, Mayor Wu emphasizes the need for accountability from large delivery platforms. Her office stated that “the mayor did not include any fee or tax on restaurant orders in the original ordinance filed.”

A spokesperson for Mayor Wu underscored the importance of data collection and responsible operations: “This ordinance holds large, national delivery companies accountable and will ensure drivers have insurance coverage while making our streets safer for everyone.” The city believes that “data gathered will help the city better plan for food delivery impacts, which has resulted in an alarming increase of perilous driving, worsened congestion and double parking — all negatively impacting resident experiences and business operations.”

Potential Implications and Counterarguments

Critics argue that the fee, irrespective of its intended purpose, will disproportionately impact low-income residents and those who rely on delivery services for convenience or necessity. As food prices continue to rise across the nation, adding extra costs to delivered meals could create a significant burden. Furthermore, some worry that restaurants might absorb the fee, leading to reduced profit margins or even closures.

Councilor Ed Flynn echoed these concerns, stating, “Although I support much of the proposed ordinance, I will vote against it based on a new tax that will ultimately be passed on to restaurants and the public. It’s not the time for a new tax in Boston. We must demonstrate fiscal discipline and obligation.”

Paul Craney, executive director of the Massachusetts Fiscal Alliance, was even more blunt: “Some Boston city councilors have never seen a tax or fee they don’t like. In this case, they want to nickel and dime consumers which will only increase the price of food…City councilors who favor this have fully lost their bearing.Elected officials should not be justifying any taxes or fees that will drive up the cost of food.”

Timeline and Next Steps

The City Council faces an early April deadline to act on the mayor’s ordinance and any proposed amendments. Councilor Coletta Zapata confirmed that the Council would have to take action…by the first week of April to comply with the 60-day order.” If no action is taken, the mayor’s original proposal will automatically go into effect. A vote is scheduled for the next weekly meeting on April 2.

The Boston Transportation Department may “periodically review and adjust the delivery fee, subject to a review and approval by the City Council, to ensure it remains effective.”

Councilor Durkan acknowledged “a clear debate about who bears these costs,” but expressed hope that the “hearing really illuminated the Council’s commitment to exploring all avenues to prevent these fees from being passed onto local businesses or delivery drivers.” She emphasized the need for “a fair and balanced approach that holds third-party delivery companies accountable while protecting our local economy.”

Stakeholder	Position	Key Concerns
Boston City Council (Proponents)	For the 15-cent fee	Funding enforcement of traffic regulations,holding delivery companies accountable.
massachusetts Restaurant Association	Against the 15-cent fee	Increased costs for restaurants and consumers, potential harm to business.
Mayor Michelle wu’s Office	Focus on accountability, but not directly proposing the fee	Driver safety, data collection, and planning for food delivery impacts.
Critics (Councilor Flynn, MA Fiscal Alliance)	Against the 15-cent fee	Disproportionate impact on low-income residents, overall increase in the cost of food.

Is the 15-cent fee on food delivery apps in Boston a fair solution to address public safety concerns and hold delivery companies accountable?

Interview: Analyzing the impact of Boston’s Proposed Food Delivery Fee

Archyde News: Welcome,everyone. Today, we’re diving into the heated debate surrounding Boston’s proposed 15-cent fee on food delivery apps. Joining us is Ms. Eleanor Vance,Senior Policy Analyst at the massachusetts Fiscal Policy Institute. Ms. Vance,thanks for being with us.

The Proposed fee: A Balancing Act?

Eleanor Vance: Thank you for having me. It’s certainly a complex issue with a lot of moving parts.

Archyde News: Indeed. The central argument seems to be balancing public safety concerns with the economic impact on restaurants and consumers.What are your initial thoughts on this 15-cent delivery fee?

Eleanor Vance: Well, on the surface, the intention – to address traffic issues and hold delivery companies accountable – is understandable. However, the implementation, notably the fee itself, raises notable concerns. Our analysis suggests that adding another cost, even a seemingly small one like 15 cents, could disproportionately affect low-income residents who rely on delivery services, especially with rising food prices. It’s a burden layered on top of an already challenging economic landscape.

Archyde News: Absolutely. We’ve heard from restaurant owners echoing similar concerns. They worry about reduced profit margins. The Massachusetts Restaurant Association has been very vocal.

Restaurant Industry Concerns

Eleanor Vance: The restaurant industry is still recovering from the pandemic. Many restaurants are heavily reliant on delivery services, so any fee, nonetheless of who absorbs it initially, could indirectly impact the financial stability of these businesses. The risk that this fee will deter customers, and possibly affect the future, is high. Furthermore, questions around the potential data-sharing requirements for the delivery companies – part of the broader ordinance – need careful consideration to ensure consumer privacy.

Archyde News: The city’s rationale appears to focus on holding these large delivery platforms accountable, emphasizing data collection and driver safety.Do you think this fee is the most effective approach?

Effectiveness of the Delivery Fee

Eleanor Vance: That’s the critical question. While the city’s goals are admirable, there’s a legitimate debate on whether a fee is the most effective mechanism. Some argue that enforcing existing traffic regulations or exploring choice solutions might address the problems without adding another layer of cost. The City Council’s exploration of preventing fees from impacting local businesses is critical.The core question for policymakers is: are there more effective ways to achieve these safety improvements without negatively impacting consumers and restaurants?

Archyde News: The timeline is tight, with the City Council needing to act by early April. What are the potential outcomes you foresee?

Potential Outcomes and The Future of Food Delivery

Eleanor Vance: We could see the fee approved as proposed, which would prompt the reactions we’ve discussed, or it might very well be amended, perhaps with different allocations, or even rejected. The Boston Transportation Department could be tasked with periodic reviews, which highlights the fluid nature of this debate. The next few weeks will be key, and I hope that the City Council will really consider the broad implications of any such a fee. It’s certainly an evolving situation, and there will be new points of view.

Archyde News: ms.Vance, a final question for you. Do you anticipate the conversation around food delivery fees will expand, perhaps changing the way other cities approach regulation?

Eleanor Vance: Absolutely. Boston’s decision will likely set a precedent.Other cities grappling with similar issues and increasing congestion and reckless driving from drivers will definitely be watching closely, and considering the potential impact on communities, businesses, and consumers. What are your thoughts? Do you think it’s fair to burden consumers with this fee, or are there more effective ways to promote driver safety and accountability? We’d love to hear from you!

Archyde News: Ms. Vance, thank you so much for sharing your insights.Our listeners greatly appreciate it.

Eleanor Vance: My pleasure.Thank you for having me.