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 companies like 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 2020 as 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 five per cent for additional fees — was set to expire on Dec. 31.

The Food Delivery Service Fee Act received royal assent Thursday, making the cap permanent.

The legislation states delivery companies cannot reduce driver pay to 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 says takeout and delivery options went from 12 per cent of B.C.'s restaurant sales in April 2020 to 36 per cent in April 2021. Restaurants had previously spoken up in favour of the cap and 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."