Governor Signs Gonzalez Bill to Protect Small Restaurants from Delivery App Exploitation

Thursday, September 24, 2020

SACRAMENTO – (Thursday, Sept. 24, 2020) – Today, Governor Gavin Newsom signed into law legislation authored by California State Assemblywoman Lorena Gonzalez (D-San Diego) that ensures food delivery companies, like DoorDash, Grub Hub, Postmates and Uber Eats, have an agreement in place with a restaurant before they start delivering their food.

“When Uber Eats, DoorDash and other gig companies operate under their own rules, businesses and consumers are harmed,” Assemblywoman Gonzalez said. “I’m grateful to see the Legislature and Governor stand up for small and family-owned businesses against massive overreach by delivery app companies.”

Assembly Bill 2149, or the Fair Food Delivery Act, addresses a problem that has become widespread in the food service industry ever since app-based delivery companies entered the marketplace. Prior to the coronavirus outbreak, consumers began to rely more on the convenience of having food from their favorite restaurant delivered to their home. Noticing this trend, many restaurants have invested in their own delivery systems, or they rely on the aforementioned third party food delivery companies to service customers.

As these app-based companies have aggressively emerged onto the scene, they have negatively disrupted the food service industry. California restaurant owners often discover these apps are offering their food for delivery to customers when they never agreed to the service. Unauthorized food deliveries can diminish the restaurant owner’s intended quality of their food, or misinform customers about prices and menu changes.

AB 2149 requires a food delivery company to obtain the express written consent of a food facility before delivering the business’ food. According to AB 2149, a food delivery company is any online business acting as an intermediary between consumers and multiple food facilities to submit food orders from a consumer to a participating food facility, and to arrange for the
delivery of the order from the food facility to the consumer.

For questions on AB 2149, or to schedule an interview with Assemblywoman Gonzalez, contact Sami Gallegos: Samantha.Gallegos@asm.ca.gov