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B.C. plans to make cap on food delivery fees permanent

Cap would limit delivery companies from charging restaurants more than 20%
A food delivery person wears a face mask as they walk away from a downtown Vancouver restaurant with a pick-up on Dec. 3, 2020. The B.C. government is aiming to cap food delivery fees in the province permanently. THE CANADIAN PRESS/Marissa Tiel

Food delivery companies will be permanently limited in how much they can charge restaurants for their services, if legislation tabled by the B.C. government passes.

The province first introduced temporary fee caps in December 2020 when the pandemic forced much of the restaurant industry to pivot to take-out and delivery services. At the time, restaurants reported being charged as much as 30 per cent per order by food delivery companies.

The suggested permanent cap would limit companies to a 20 per cent charge per order, combining the two separate caps of 15 and five per cent enforced so far.

And, as with the temporary measures, food delivery companies would be prohibited from reducing driver pay to make up for the fee cap.

“As the costs of food and labour rise worldwide, B.C. restaurants need to be supported to ensure prices are affordable and that delivery companies aren’t charging unfair fees,” Ravi Kahlon, minister of jobs, economic recovery and innovation, said in a news release Thursday (Oct. 6).

The current temporary cap is set to expire on Dec. 31.

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Black Press Media Staff

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