BC is ringing in the new year by implementing the first ever delivery-fee cap for companies such as SkipTheDishes and DoorDash.
Beginning on January 1st, 2023, restaurant owners will have more certainty when it comes to their overhead costs.
Minister of Jobs, Economic Development and Innovation, Brenda Bailey doesn’t want to see restaurant owners who are struggling to turn a profit unfairly charged by food-delivery companies.
“We all have a favourite local restaurant, somewhere we celebrate as families and friends, eat our favourite foods, or get a taste of home,” said Bailey, Minister of Jobs.
“When restaurants were being charged unfair fees, our government acted fast to implement a temporary cap on delivery-service fees. We’re excited to bring in a permanent cap in the new year that will provide more support to restaurants.”
The Canadian government passed the Food Delivery Service Fee Act on November 3rd to respond to delivery companies charging restaurants upwards of 30% of an order’s value over the duration of the COVID-19 pandemic.
This was the first permanent cap to take the place of the temporary cap first imposed in December of 2020.
Now, with the new cap in place, delivery companies cannot charge restaurants more than 20% of the dollar value of an order.
This new act also gives restaurants the opportunity to enhance the services provided by the delivery companies, if they choose to do so.
In addition to advocating for restaurants, the new act also protects delivery drivers. It ensures that companies don’t add fees onto drivers. Delivery employees and contractors will now be guaranteed their full wages and any tips earned will be theirs.
Parliamentary Secretary for Labour, Janet Routledge saw that over the course of the COVID-19 pandemic, it became increasingly important to protect delivery drivers wages while the companies they were employed by boomed.
“We’ve seen dramatic growth in app-based delivery work in recent years, but we need to ensure workers are treated fairly,” said Routledge.
“It was a priority to include protections for food-delivery workers in this legislation that prevent the costs of the delivery-fee cap from being downloaded onto them.”