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British Columbia permanently capping fees charged by food delivery companies

Click to play video: 'B.C. government makes cap on food-delivery fees permanent'
B.C. government makes cap on food-delivery fees permanent
Minister Ravi Kahlon announced Thursday the provincial government is permanently capping fees charged by food delivery services. The cap was put in place as a temporary measure in December of 2020 during the pandemic and is now being made permanent – Oct 6, 2022

The B.C. government has introduced legislation to permanently cap the fees companies like Uber Eats, Door Dash and Skip the Dishes can charge restaurants for food delivery.

The province originally put the 20 per cent cap in place during the pandemic and will now continue the policy permanently.

“This bill will help our restaurants navigate the pandemic, inflation and supply change disruptions,” Economic Recovery minister Ravi Kahlon said.

“We will continue to allow our restaurants to gain more certainty.”

If passed, the measure will also prohibit delivery companies from reducing the amount of money a driver is paid.

Click to play video: 'B.C. extends cap of food delivery fees for another year'
B.C. extends cap of food delivery fees for another year

Many restaurants in the province were forced to pivot to pick-up or delivery options during the height of COVID-19 restrictions.

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Click to play video: 'Skip The Dishes implements a $0.99 ‘B.C. Fee’'
Skip The Dishes implements a $0.99 ‘B.C. Fee’

This pivot led to a surge in business for home delivery companies with many at the time increasing service feeds to take advantage of the surge in demand.

The 20 per cent cap will combine a 15 per cent cap on food and a 5 per cent cap on additional fees.

The temporary measure was set to expire on Dec. 31, 2022.

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