Saskatchewan NDP calls on province to place 15% cap on food delivery fees

The Saskatchewan NDP is calling on the province to cap third-party delivery fees at 15 per cent to help restaurant owners save money.

On Friday, a Güd Eats in Regina announced it would be closing its doors, saying it was largely due to having to pay 20 to 25 per cent in fees to companies such as DoorDash and SkipTheDishes.

“Restaurants are already operating at 25 per cent capacity thanks to the Sask Party’s mismanagement of COVID-19. I’ve spoken to many restaurant owners who feel captive to these high fees,” said Aleana Young, official Opposition critic for jobs and the economy.

“Restaurants are small businesses too, and introducing a cap on fees will help save many from having to close their doors for good.”

Ontario has already capped third-party delivery fees to 15 per cent on delivery fees and a cap of 20 per cent inclusive of all fees.

British Columbia has also capped delivery fees at 15 per cent.

Young is also asking the government to “introduce a five per cent cap on processing fees to prevent any revenue losses incurred by the third-party delivery platforms from being downloaded onto drivers.”

“Bars and restaurants are told to stay open while their customers are told to stay home — it’s the worst of both worlds,” Young said.

“These businesses need support, and this is one step that can help keep businesses open in a responsible way.”

In a statement made to Global News on Friday when asked about a potential cap on third-party delivery fees, a spokesperson said the provincial government is “monitoring the changes in other provinces to limit such fees.”

The Saskatchewan government recently introduced a Strong Recovery Adaptation Rebate, which allows businesses that have pivoted to third-party delivery apps to apply for a reimbursement of 50 per cent for their first six months of costs up to $5,000.

The spokesperson added that the government “will continue to engage with the business community on this and other issues.”

1:59 Pandemic, 3rd-party delivery fees play role in Güd Eats closure in Regina: owner

DoorDash told Global News in a statement last week that it understands the difficulty restaurants are having right now and is taking steps to support restaurants and make things affordable, while SkipTheDishes said it has worked “tirelessly” to support its restaurant partners throughout the pandemic with measures of its own.