A public delivery option for Maryland
Maryland
Delivers.
A state-owned alternative to DoorDash, Uber Eats, and Grubhub
10% restaurant fee$20 driver wage targetYear 3 operating break-even
Policy and financial proposal · August 2026
The decision
Build a public option. Compete on value.
Maryland does not need to ban private delivery apps. The state needs a better offer.
The state owns the marketplace, dispatch network, brand, and data. Regional public operating units employ drivers and serve restaurants.
The market failure
Restaurants pay more for visibility.
Current platforms tie marketplace reach to higher commission tiers.
Maryland Delivers
10%
DoorDash Basic
15%
DoorDash Plus
25%
DoorDash Premier
30%
On a $40 order
Maryland Delivers$36 kept
DoorDash Basic$34 kept
DoorDash Premier$28 kept
Amounts shown before the restaurant’s food, labor, packaging, and overhead costs.
Operating model
Public digital infrastructure. Local delivery teams.
State authority
Owns software, rules, brand, pricing, and data.
Regional units
Schedule drivers, dispatch orders, and support local zones.
Local economy
Restaurants keep more. Drivers receive stable pay.
No outside shareholdersNo paid search rankingIndependents first in searchFranchises rank lowerNo customer-data salesNo exclusive contracts
Ownership and oversight
Govern the network with the people who rely on it.
11board seats
3Independent restaurants
3Elected drivers
2Consumers
1County government
1Technology and security
1State labor or commerce
- Annual independent audits
- Public fee-change hearings
- Five-year performance review
- Strict conflict rules
Transparent pricing
Charge for service, not market power.
Every fee appears before checkout. Restaurant menu prices match in-store prices.
Restaurants
10%Delivery marketplace3%Pickup5%Self-deliveryCustomers
$4.99+Distance-based delivery$2Service fee$8/moOptional membershipDrivers
100%Of customer tips$20/hrStarting wage targetPaidMileage and benefitsMaryland’s delivery impact fee and sales tax remain separate pass-through charges.
Restaurant onboarding
Launch promotions to move independents off legacy apps.
Switch incentives target local restaurants — not franchise chains paying for visibility elsewhere.
- Reduced or waived commission for the first 90 days
- Free menu onboarding and POS setup
- Featured placement for independent restaurants during launch
- Franchises and chains rank lower in default search
- No paid search ranking for any merchant
Independent restaurants get a better deal on day one. Chains cannot buy their way to the top of search results.
Unit economics
A $40 order targets a $2 contribution.
Distance pricing protects wages and service quality on longer trips.
Restaurant fee$4.00
Customer fees and member revenue$9.50
Program revenue$13.50
Driver, payment, support, insurance$11.50
Contribution$2.00
The model requires 2.5 to 2.7 deliveries per paid driver hour. Each $1 cost change shifts Year 5 profit by $13 million.
Driver standard
Flexible shifts without unstable pay.
Starting target$20per scheduled hour
- W-2 employment
- All scheduled time paid
- E-bike and scooter stipend
- Monthly equipment stipend for qualified vehicles
- Stipend tied to bike-lane service zones
- Workers’ compensation
- Unemployment insurance
- Paid sick leave
- 100% of tips
- Human appeals for suspensions
The $20 target sits above Maryland’s $15 statewide floor. E-bike and scooter stipends apply to eligible W-2 delivery personnel in covered zones. Figures subject to pilot data.
Service experience
One network for customers, restaurants, and drivers.
Customer
Web and mobile ordering, guest checkout, live tracking, pickup, scheduled orders, English and Spanish.
Restaurant
Free menu setup, POS connections, sales reports, direct customer relationships, two-day payouts.
Driver
Shift selection, route guidance, order batching, clear pay details, safety tools, human support.
Public platform
State-owned source, modular vendors, accessible design, tokenized payments, no vendor lock-in.
Startup funding
$30 million funds three years of launch work.
The appropriation includes platform development and early operating losses.
Initial appropriation$30MNo second delivery tax
Driver wage guarantees
$8M
Technology and security
$6M
Operations and support
$5M
Restaurant onboarding
$3M
Customer launch
$3M
Rural pilots
$3M
Legal, audit, reserve
$2M
Four-year rollout
Prove density first. Expand after the numbers work.
Authorize
Pass the act, form the board, secure 300 restaurant commitments, recruit 20,000 customers.
Build
Launch the platform, connect POS systems, hire 300 to 500 drivers, test with 25 restaurants.
Baltimore
Open three- to four-mile zones with at least 150 active restaurants and live support.
Scale
Move through Central Maryland, then add scheduled rural routes and county partnerships.
County infrastructure
Improve roads with functional bike lanes in delivery zones.
Last-mile corridors upgraded in partnership with counties to support efficient, low-cost delivery.
County partnerships
Coordinate road improvements with local governments in active service zones.
Functional bike lanes
Protected or buffered lanes on high-volume delivery corridors.
Lower trip cost
Supports e-bike and scooter delivery while improving safety for all road users.
Post-repayment state profit share can fund county infrastructure improvements, including bike lanes, alongside restaurant start-up stipends and network reinvestment.
Expansion gate
No new zone opens without local density.
A populated marketplace protects customers, drivers, and the public budget.
Expansion requires at least two deliveries per driver hour, with a 2.5 target in dense service zones.
Performance is monitored continuously. Sustained low throughput triggers coaching, reduced scheduling, or removal from the platform.
Base-case forecast
Operating profit begins in Year 3.
Annual profit reaches $31 million by Year 10 under the base assumptions.
−$5M
−$3M
+$1M
+$5M
+$11M
+$17M
+$22M
+$24.5M
+$28M
+$31M
Year 3Operating break-even
Year 6Full economic recovery
Year 7Recommended state cash repayment
$31MYear 10 operating profit
Annual projection
Volume turns the network into a public revenue source.
Dollar amounts in millions. State transfers follow the recommended reserve policy.
| Year | Orders | Revenue | Expenses | Profit | To Maryland |
|---|---|---|---|---|---|
| 1 | 1M | $13.5M | $18.5M | $-5M | $0M |
| 2 | 3M | $40.5M | $43.5M | $-3M | $0M |
| 3 | 6M | $81M | $80M | $1M | $0.8M |
| 4 | 9M | $121.5M | $116.5M | $5M | $3.8M |
| 5 | 13M | $175.5M | $164.5M | $11M | $8.3M |
| 6 | 17M | $229.5M | $212.5M | $17M | $12.8M |
| 7 | 20M | $270M | $248M | $22M | $12.5M |
| 8 | 22M | $297M | $272.5M | $24.5M | $12.3M |
| 9 | 24M | $324M | $296M | $28M | $14M |
| 10 | 26M | $351M | $320M | $31M | $15.5M |
Return to Maryland
$79.8 million transferred by Year 10.
A closed system: one $30M appropriation, self-sustaining after break-even. The recommended policy sends 75% of profit to Maryland until repayment, then 50% thereafter.
- County infrastructure improvements, including bike lanes
- Restaurant start-up stipends
- Reinvestment in the delivery network
Range of outcomes
Execution speed changes the payback date.
Order density and contribution per order drive every scenario.
- Year 5 orders
- 8M
- Operating break-even
- Year 6
- State repayment
- After Year 10
- Year 5 orders
- 13M
- Operating break-even
- Year 3
- State repayment
- Year 7
- Year 5 orders
- 18M
- Operating break-even
- Year 2
- State repayment
- Year 5
Risks and controls
Protect the public investment with hard stop rules.
Low marketplace density
Pre-enroll restaurants and residents. Delay launch until each zone clears its gate.
High delivery cost
Limit radius, batch orders, use e-bikes, and price longer trips by distance.
Slow public procurement
Use modular contracts, milestone payments, and state ownership of source and data.
Political or vendor capture
Publish audits, ban paid ranking, enforce conflict rules, and review performance after five years.
Legislative package
Pair the public option with market-wide transparency.
Maryland Local Delivery Public Option Act
Create the authority, board, funding, fee caps, labor standard, audits, and five-year review.
- Itemized customer receipts
- Driver pay, time, and distance before acceptance
- Restaurant consent before menu listing
- Full tip pass-through
- No price-parity or exclusivity clauses
- Annual county-level reports
Maryland considered similar transparency rules in HB 1584 during the 2026 session.
Public scorecard
Measure service, labor, and financial health together.
Recommended action
Fund one disciplined Baltimore launch.
$30M
Three-year appropriation
- Create the independent authority
- Pre-enroll 300 restaurants and 20,000 customers
- Launch one dense Baltimore service area
- Expand only after unit economics pass
Prove the service. Repay the state. Keep more delivery dollars in Maryland.
Sources and notes
Primary references
Financial figures remain planning assumptions pending a Maryland demand study and pilot data.
DoorDash merchant pricing15%, 25%, and 30% delivery commissions
Uber Eats merchant pricingMarketplace pricing and fee structure
Grubhub pricing and feesMarketing and delivery fee structure
Maryland wage requirements$15 state floor and higher local rates
Laws of Maryland, Chapter 604Retail delivery impact fee
Maryland HB 1584Delivery platform transparency proposal
Maryland public authority reviewQuasi-governmental precedents
U.S. Census QuickFactsMaryland population estimate
Base model: $40 average order, $13.50 revenue per order, $11.50 variable cost per order, and 2.5 to 2.7 deliveries per paid driver hour.