Denver city lawmakers are planning to extend the sunset date on a temporary cap on commission fees for third-party delivery companies, such as GrubHub and DoorDash, to continue to ease the burden on local restaurants during the pandemic.

The proposal cleared the first vote on Tuesday with unanimous support from the Denver City Council. If approved next week, as officials expect it to be, the cap limit’s initial expiration date of Feb. 9 will be extended until June 14. 

The emergency measure, first put in place this past October, was spearheaded by District 4 Denver City Councilwoman Kendra Black and welcomed by restaurant owners who rely on food delivery companies that can set their commission fees as high as 30%. The measure is backed by the Colorado Restaurant Association, the city’s coronavirus-era Economic Relief and Recovery Council, Eat Denver and others.

However, some critics argue that the new law is ineffective at best and harmful at worst, potentially shifting the burden to patrons and the business owners whom the rules were written to help.

“Pricing regulations can cause us to increase costs for customers,” a DoorDash spokeswoman said Monday, “which could lead to fewer orders for local restaurants and fewer earning opportunities for Dashers.”

DoorDash has added a $2 “Denver Fee” to every local customer’s order in response to the city’s cap. 

A GrubHub spokesman said that the company “in general” does not support fee caps, despite being “well-intended,” because they are “counterproductive at a time when restaurants need more support, visibility and order volume than ever.” 

Still, he told Colorado Politics, “we aren’t planning to do a new diner fee like DoorDash did.” 

Under Denver’s current rules, commission fees are capped at 15%, on par with legislation passed in other major cities across the country – including Chicago, Los Angeles, New York City, Seattle and Washington, D.C – as well as in Adams County and the city of Aurora locally. 

Black’s legislation also ensures that 100% of the tips go to the delivery driver, and that delivery companies be barred from tacking on extra processing or service fees.

The Denver City Council is scheduled to hold a final vote on the proposal Jan. 25.