In a bid to maintain a lifeline for the province’s restaurants, the provincial government has extended the cap on fees for food delivery companies such as Skip the Dishes and Door Dash.
The cap, imposed in December last year, limits the total fees food delivery companies can charge to no more than 15 per cent on orders. That cap was to expire Sept. 28, but has been extended until the end of the year.
“In tough times like these, people look to each other to find support and guidance, and that includes government. This extension helps one of the hardest-hit sectors stay open as we slowly and safely emerge from the pandemic,” said Minister of Jobs Ravi Kahlon.
On top of the 15 per cent cap, an additional cap of five per cent has been extended for other related fees associated with use of the service, such as online ordering and processing fees.
“This is welcome news for B.C. restaurateurs,” said Mark von Schellwitz of Restaurants Canada. “During the past 18 months, takeout and delivery sales have become a lifeline for restaurants and will continue to provide a critical revenue stream on our road to recovery. We appreciate the B.C. government listening to our hard-hit industry and extending this measure.”
Small-delivery service businesses that serve fewer than 500 restaurants will continue to be exempt from the order. The order also prohibits delivery companies from reducing compensation for their drivers, so that employees continue to be paid their regular wages.
“The extension of the food delivery service cap will have a significant positive impact on restaurants like ours that use delivery companies to service their customers,” said Warren Erhart, president of White Spot Hospitality. “We appreciate the collaboration on this initiative as we work together to find solutions in these challenging times.”