B.C. extending cap on fees food delivery services can charge through year's end
The B.C. government has extended rules limiting the fees that food delivery companies can charge that were originally put in place to help restaurants cope with the COVID-19 pandemic.
Since Dec. 22, 2020, the province has limited fees that food delivery companies like DoorDash and SkipTheDishes can charge to both restaurants and consumers.
The 15 per-cent cap on fees charged to restaurants and the 5 per-cent cap on other, related fees were originally scheduled to expire on Sept. 28.
The provincial Ministry of Jobs, Economic Recovery and Innovation said in a news release Sunday that the fee caps are now being extended until Dec. 31, at which point it will be reviewed again.
“The restaurant industry has shown incredible strength and resiliency throughout the pandemic,” said Ravi Kahlon, Minister of Jobs, Economic Recovery and Innovation, in the release.
“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.”
Small delivery service businesses that serve fewer than 500 restaurants are exempt from the rules, which also prohibit companies from reducing drivers' wages, according to the ministry.
In the ministry's statement, Mark von Schellwitz, Restaurants Canada's vice president for Western Canada, called the extension "welcome news for B.C. restaurateurs."
“During the past 18 months, takeout and delivery sales has become a lifeline for restaurants and will continue to provide a critical revenue stream on our road to recovery," Schellwitz said. "We appreciate the B.C. government listening to our hard-hit industry and extending this measure.”