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B.C. extends cap on fee food delivery apps can charge restaurants for 3 months

Take out and delivery have been a lifeline for B.C. restaurants amid the COVID-19 pandemic, but they say the fees online apps were previously charging were unsustainable. Morris Gamblin / Global News

British Columbia has temporarily extended a cap on the fees food delivery services can charge to restaurants.

The order which was originally implemented last December limits the fee companies like Uber Eats, Skip the Dishes and Door Dash can charge restaurants to 15 per cent of an order.

Read more: B.C. places 15-per-cent cap on fees for food delivery services

The fee cap was originally set to expire on Sept. 28, but has now been extended Dec. 31, 2021, at which time the province will again review it.

“In tough times like these, people look to each other to find support and guidance, and that includes government,” Jobs Minister Ravi Kahlon said in a media release.

“This extension helps one of the hardest-hit sectors stay open as we slowly and safely emerge from the pandemic.”

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B.C. restaurants upset after Skip The Dishes introduces new delivery fee – Feb 4, 2021

Sunday’s order also extends a five per cent cap of other fees delivery companies can charge to restaurants, to prevent them from being used to avoid the 15 per cent cap.

Read more: At-cost delivery app touted as lifeline for Vancouver’s restaurants amid COVID-19 restrictions

Before the cap was implemented, restaurants had complained that delivery apps were taking a commission of as much as 30 per cent of a customer’s bill.

With a growing percentage of restaurant businesses shifting to take-out and delivery due to COVID-19, operators said the model was unsustainable.

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