British Columbia plans to make food delivery fee cap permanent – ​​Houston Today

A food delivery man wears a face mask as he walks away from a restaurant in downtown Vancouver with a pick up on December 3, 2020. The British Columbia government aims to permanently cap fees food delivery in the province. THE CANADIAN PRESS/Marissa Tiel

British Columbia plans to make food delivery fee cap permanent

The cap would prevent delivery companies from charging restaurants more than 20%

Food delivery companies will be permanently limited in how much they can charge restaurants for their services, if legislation tabled by the BC government is passed.

The province first introduced temporary fee caps in December 2020 when the pandemic forced much of the restaurant industry to turn to take-out and delivery services. At the time, restaurants said they were charged up to 30% per order by food delivery companies.

The suggested permanent cap would limit companies to a 20% fee per order, combining the two separate caps of 15 and 5% applied so far.

And, as with the temporary measures, food delivery companies would be prohibited from taking driver pay cuts to offset the fee cap.

“As food and labor costs rise around the world, BC restaurants need to be supported to ensure prices are affordable and delivery companies don’t charge extra. unfair fees,” said Ravi Kahlon, Minister for Jobs, Economic Recovery and Innovation. released on Thursday (October 6).

The current temporary cap is set to expire on December 31.

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