British Columbia permanently caps food delivery service fees

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B.C. government makes cap on food-delivery fees permanent
WATCH: 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 become the first in Canada to permanently cap the fees food delivery services can charge to restaurants.

Under the Food Delivery Service Fee Act, which has now received royal assent, companies like Uber Eats and SkipTheDishes will not be able to charge restaurants more than 20 per cent of the dollar value of an order.

B.C. initially implemented a temporary cap of 15 per cent on the fees in December 2020, as food delivery surged while people were urged to stay home during the pandemic.

Restaurants had complained that the delivery companies were charging them as much as 30 per cent in commission on the total price of a food order, making it difficult to generate any profit in an industry with razor-thin margins.

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The temporary cap, which was extended twice, was due to expire at the end of December.

The new act also bans companies from cutting driver compensation to skirt the fee cap.

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