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.
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.”
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.
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.