Last week, the House and Senate introduced bills, HF2369 and SF2319, to establish driver protections for transportation network companies (think Uber and Lyft). As drafted, the bill would impact all food delivery services and does not clarify if in-house delivery services are exempted. One third party delivery service estimated food delivery costs could rise to $9 - $14 per order (in customer delivery fees). Another analysis indicated restaurants could lose $6 - $9M per quarter if this quashed demand for food deliveries. Furthermore, many hospitality business patrons rely on rideshare transportation services and we are consciously aware this may significantly increase the price of rideshares and decrease the number of dine-in patrons.
Yesterday, the Senate Labor Committee heard SF2319 and Hospitality Minnesota’s Jill Sims testified in opposition to the bill. The bill is also scheduled for a hearing on Thursday in the House Labor and Industry Finance and Policy Committee. We are closely monitoring the bill and will continue to work with legislators and industry partners on the legislation.
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