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Bill

S 733

An Act providing a delivery network company surcharge for small businesses and EJ communities

194th Legislature (2025-2026) Introduced by Lydia Edwards

Massachusetts bill imposes surcharge on delivery network companies to fund support programs for small businesses and environmental justice communities.

Bill reported favorably by committee and referred to the committee on Senate Ways and Means
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Bill Summary · S 733

Legislative bill overview

S 733 imposes a surcharge on delivery network companies (like DoorDash, Uber Eats) operating in Massachusetts, with revenues directed to support small businesses and environmental justice communities. The bill aims to address the economic burden that third-party delivery platforms place on local restaurants and merchants while channeling funds to underserved communities.

Why is this important

Delivery platforms typically charge restaurants 15-30% commissions, squeezing already-thin profit margins. This bill attempts to shift some costs to the platforms themselves and redistribute those revenues to help small businesses and EJ communities adapt to the digital economy, potentially affecting thousands of Massachusetts merchants and their workers.

Potential points of contention

  • Business impact: Delivery companies will likely pass surcharges to consumers through higher fees, potentially reducing order volume and hurting the very restaurants the bill aims to help
  • Implementation ambiguity: The bill's details on surcharge rates, fund distribution mechanisms, and eligibility criteria for small businesses and EJ communities remain unclear from available information
  • Competitive fairness: Traditional restaurants operating their own delivery services versus those using platforms may face unequal competitive dynamics depending on how the surcharge is structured

Compiled from official sources — confirm details with the bill’s official record.

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