The Independent Restaurant Coalition is advocating for immediate regulatory reforms in the third-party delivery app market.

The Independent Restaurant Coalition (IRC) is advocating for immediate regulatory reforms in the third-party delivery app market. While these platforms—DoorDash, Uber Eats, and Grubhub—provide convenience for consumers and have experienced rapid growth, they often impose unsustainable financial burdens on independent restaurants. Without action from Congress, the current market dynamics will continue to disproportionately harm small and mid-sized restaurants, threatening their ability to thrive.

The U.S. online food delivery market value in 2024: approximately $31.9 billion, with projected growth to $74.0 billion by 2033. The Market share breakdown (as of 2025–early 2025):

  • DoorDash: ~60–61%
  • Uber Eats: ~26%
  • Grubhub: ~6–8%

In 2024, DoorDash’s revenue surged to approximately $10.72 billion, a 24.2% increase from the previous year. Uber Eats contributed around $13.7 billion to Uber’s food delivery segment in 2024. Despite these platforms' high revenue, commission rates continue to burden independent restaurants—typically ranging between 15–30%, and in the case of Grubhub, fees can span 10–30% depending on contracts and negotiations. This doesn't account for additional charges such as marketing fees, premium placement costs, and processing fees, all of which further erode slim profit margins and place restaurants in precarious financial positions. This arrangement forces many restaurants into precarious financial positions, reducing their already thin profit margins.

Regulatory Developments

Several states and localities have taken action to address delivery app overreach:

  • New York City's permanent commission cap of 20% for delivery services
  • California's transparency requirements for fee disclosure
  • Seattle's data sharing requirements that give restaurants access to customer information

However, a patchwork of state and local regulations creates compliance burdens for restaurants operating in multiple jurisdictions. Federal legislation remains the most effective solution for creating consistent, nationwide protections

Why Restaurants Are Disproportionately Affected

The challenges facing independent restaurants extend beyond high commission fees. These third-party delivery platforms also restrict access to valuable customer data, making it difficult for restaurants to build direct relationships with their patrons. Additionally, independent restaurants often lack the resources to negotiate better terms or develop in-house delivery alternatives. As a result, many establishments become overly dependent on these platforms for customer acquisition and retention.

For small and mid-sized restaurants, the costs and constraints imposed by third-party apps are unsustainable. High commission fees, coupled with marketing expenses, drastically reduce profitability. These platforms also place limitations on pricing strategies, further eroding financial flexibility. For many independent operators, survival is becoming increasingly difficult in this unequal market.

The Need for Congressional Action

The IRC is calling on Congress to protect independent restaurants from the predatory practices of third-party delivery apps. Without intervention, many beloved local establishments will continue to struggle under the weight of unfair commissions and restrictive business models. The time for action is now. To ensure a more balanced and fair relationship between third-party delivery platforms and restaurants, the IRC is advocating for the following reforms:

  • Written Agreements: Delivery apps should not be allowed to advertise or sell a restaurant's products without a formal written agreement. This protects restaurants from being listed without their consent or under unfavorable terms.
  • No Price Restrictions: Delivery platforms should not impose restrictions on the prices set by restaurants. This ensures that restaurants maintain control over their pricing strategies and can adjust to changing market conditions.
  • Commission Fee Cap: A cap should be placed on commission fees, with no platform allowed to charge more than 15% of an order for delivery services. This would significantly reduce the financial burden on independent restaurants.
  • Transparent Fee Disclosure: All fees and charges associated with a customer’s order must be clearly disclosed upfront. Additionally, a receipt outlining these costs should be provided after the transaction to increase transparency for both restaurants and customers.
  • Customer Interaction and Listing Removal: Delivery platforms must establish clear methods for restaurants to communicate with customers regarding orders. Additionally, platforms should outline the circumstances under which a restaurant can request the removal of their listing from the app.

The third-party delivery app market, dominated by a few major players, presents significant challenges to independent restaurants. High commission fees, lack of customer data access, and predatory practices have made it increasingly difficult for small and mid-sized establishments to thrive. The IRC is urging Congress to take action by implementing the proposed regulatory reforms to level the playing field and ensure the long-term sustainability of independent restaurants and bars.