The B.C. government wants to permanently cap the prices imposed by food delivery services like Uber and Skip the Dishes in order to address ongoing inflation and financial difficulties encountered by local restaurant and bar operators.
If approved, the province’s law would limit delivery charges to restaurants and other companies to no more than 20% of the order’s total value.
“As the costs of food and labour rise worldwide, B.C. restaurants need to be supported to ensure prices are affordable and that delivery companies aren’t charging unfair fees,” said Minister of Jobs, Economic Recovery and Innovation Ravi Kahlon.
“By introducing legislation allowing us to convert the delivery fee cap from temporary to permanent, we are able to provide more certainty to the sector and to delivery drivers.”
This follows the implementation of a temporary cap in December 2020. This short-term solution was extended and will expire in December.
The previous temporary limits for meals was 15% and 5% for other fees. The province says the regulations were implemented in response to reports that some restaurant surcharges might be as high as 30%.
Delivery companies were not allowed to lower driver compensation as a result of the caps due to measures implemented by the province.
“Transforming the temporary delivery fee cap into a permanent model is a game changer for the recovery of our industry and setting restaurants up to be able to thrive in the future,” said Ian Tostenson, president and CEO, BC Restaurant and Foodservices Association.
