The Saskatchewan government announced Wednesday it is placing a temporary cap on third-party food delivery fees such as Uber Eats and Skip the Dishes to help support restaurants struggling during the coronavirus pandemic.
Delivery fees are being capped at 18 per cent of a customer’s pre-tax order if the delivery service completes the delivery. A service fee is also capped at 10 per cent if a customer picks up the food from the restaurant, but uses a third-party app to purchase the food.
It will be in effect from March 28 to April 30, 2021.
“Our restaurant sector has been especially challenged by the economic impacts of COVID-19 and this is one more way we are working with industry to support this important sector and the jobs it provides,” Trade and Export Development Minister Jeremy Harrison said.
“These caps will mean more money remains with small businesses and I encourage all Saskatchewan residents to continue to support their local restaurants.”
Jim Bence, Hospitality Saskatchewan president and CEO, calls the news “terrific for the industry.”
“These are extremely difficult times for hospitality, especially in Regina right now, and further demonstrates the government’s unwavering commitment to our sector,” Bence said.
The cap will apply to third-party delivery companies that serve more than 50 restaurants in Saskatchewan.
In February, the Saskatchewan NDP called on the government to make this type of change.
“New Democrats are fighting for families and businesses and getting results. We all know that restaurants are going through a difficult time right now. That’s why we called for this cap to be introduced,” said Aleana Young, NDP critic for economy and jobs.
“It’s good to see the government has agreed with our call to cap delivery fees, but the fact is that a one-month cap won’t have the impact we all want it to have for struggling restaurants.”
Young said the NDP will push the government to extend the cap.