Adopt the Resolution.

On September 16, 2020, the Mayor and City Commission referred to the Neighborhood and Quality of Life Committee a discussion regarding the creation of a reimbursement program to Miami Beach restaurants for delivery services. At the September 23, 2020 Neighborhood and Quality of Life Committee meeting, the Committee discussed the hardships faced by restaurants due to the COVID-19 pandemic. Although restaurants were authorized to remain open throughout the shutdown, the primary restaurant model of in-person dining was restricted and remains limited even during the reopening phases.

Due to physical distancing guidelines and the continued spread of the virus, restauranteurs and their patrons rely heavily on third party delivery services. The reduction of in-person dining and the increased dependency on third party delivery services exacerbates existing financial constraints, due to the associated commission fees from platforms such as Uber Eats, Postmates, DoorDash and GrubHub among others.

Commissioner Góngora discussed the potential to create a reimbursement program for Miami Beach restaurants to address the financial burden of delivery service commission fees. At the September 29, 2020 Budget Meeting, the Mayor and City Commission adopted Resolution No. 2020-31428, adopting the FY2021 General Fund budget, including an allocation of $60,000 for a reimbursement program to offset expenses incurred by Miami Beach restaurants for third party delivery services. On October 28, 2020, the City Commission subsequently approved Resolution No. 2020-31470, accepting the recommendation of the Neighborhood and Quality of Life Committee at its October 19 meeting and authorizing the creation of the Miami Beach Restaurant Reimbursement Grant Program, allowing for grants of up to $1,000 to reimburse eligible restaurants for third party delivery service commission fees.

The City has continued to explore methods for providing additional relief to Miami Beach restaurants and consumers. We are aware that Uber Eats successfully implemented partnerships with other municipalities, including the City of Orlando and the City of North Miami, which provided a basis for the types of incentives to explore. An important element to incorporate was a marketing campaign that will help drive additional consumer demand to local businesses in the City of Miami Beach.

Following recent meetings with Uber Eats where Commissioner Gongora and City staff negotiated terms, a proposal was provided and is now submitted for consideration by the City Commission. The proposal, attached as Exhibit A, offers a few relief measures that benefit both Miami Beach residents and restaurants and includes:

For Miami Beach residents:

•  Waiver of delivery fees paid by the customer for a period of 6 weeks
• One free month of Uber Eats Pass, which offers free deliveries and 5% discount on all orders
• New user marketing promotional code providing $10 off first time orders at Miami Beach restaurants

For Miami Beach restaurants:

• Removal of all marketplace fees paid by the restaurant when consumers pick-up orders at the restaurant, including credit card processing fees (through May 31, 2021)
• Removal of all fees paid by the restaurants when using their own delivery person (through May 31, 2021)
• Waiver of fees paid by restaurant when Uber Eats processes orders through a restaurant’s website (through May 31, 2021)
• Waiver of new restaurant activation fee and free use of equipment necessary to participate in Uber Eats (through May 31, 2021)

In addition to the financial perks for restaurants and residents, the proposal includes a joint marketing effort between Uber Eats and the City, including issuing of a joint press release to raise awareness, targeted marketing by Uber Eats of its existing Miami Beach users, and Uber Eats will provide digital marketing assets to participating restaurants to help promote the campaign.   

The Neighborhood and Quality of Life Committee, at its January 28, 2021 meeting, considered the Uber Eats proposal and offered a favorable recommendation to move forward to negotiate an agreement between the City and Uber Eats.

According to the GMCVB, countywide data suggests that in-house restaurant dining is rebounding towards approximately 87% of historical activity after experiencing record lows last summer. Fortunately, South Florida remains one of the few “open for business” destinations where visitors continue to visit this winter. The recovery of our hospitality industry remains vital, as we know from the 2019 Resident Satisfaction Survey that 38% of respondents believe that tourism is positively correlated to restaurant industry growth. 

The waiver of fees paid by customers and participating restaurants comes at no cost to the City. The participation of the City in marketing of the campaign will have nominal costs, if any.

The Administration supports the creation of a collaborative partnership between the City and Uber Eats, and recommends that the Mayor and City Commission authorize the City Manager and City Attorney to negotiate an agreement with Uber Eats based on the attached proposal.