B.C. passes legislation to permanently cap delivery company fees charged to restaurants

The B.C. government has passed legislation to permanently cap the fees charged by food delivery companieslike Skip the Dishes and Uber Eats at 20 per cent of the dollar value of an order.

Victoria enacted numerous temporary caps stretching back to December 2020as food delivery thrived amid COVID-19 pandemic restrictions, and companies were charging restaurants up to 30 per cent of an order's value.

The current cap set at 15 per cent of the order's value, plus fiveper cent for additional fees was set to expire on Dec. 31.

The Food Delivery Service Fee Act receivedroyal assent Thursday, making the cappermanent.

The legislation states delivery companies cannot reduce driver payto make up for the fee cap.

Ravi Kahlon, B.C.'s minister of jobs,said in a statement the legislation will provide more stability and certainty to the restaurant sector.

The B.C. government says it is the first jurisdiction in Canada to pass legislation capping delivery fees.

The province saystakeout and delivery options went from 12 per cent of B.C.'s restaurantsales in April 2020 to 36 per cent in April 2021. Restaurants had previously spoken up in favour of the capand further regulation to ensure restaurants weren't being gouged by gig-economy delivery apps.

Mark von Schellwitz, vice president of Western Canada with Restaurants Canada, is quoted by the government as saying the legislation would "help the restaurant sector remain viable for the long term."