Large-scale food delivery companies operating in British Columbia will not be able to increase their delivery fees for the rest of the year.
The B.C. government announced Sunday that the provincial order capping food delivery service fees has been extended under the COVID-19 Related Measures Act until Dec. 31, 2021.
The move means the fees fast food delivery companies — such as Skip The Dishes, DoorDash and others — can charge restaurants will remain capped at 15 per cent. It also means the five per cent cap on other related fees that food delivery service companies charge, such as online ordering and processing fees, will remain in place.
“In tough times like these, people look to each other to find support and guidance, and that includes government. This extension helps one of the hardest-hit sectors stay open as we slowly and safely emerge from the pandemic,” Ravi Kahlon, Minister of Jobs, Economic Recovery and Innovation, said in a press release.
Furthermore, the province says the order will also prohibit delivery companies from reducing compensation for their driver — ensuring employees continue to receive their regular wages.
Smaller delivery service businesses that serve less than 500 restaurants are exempt from the order.
The order was first introduced last December and was set to expire on Sept. 28.
“Originally, when we signed up, it was for 25 per cent. It was a difficult decision to make, but it was almost like we didn’t have an option or choice because so many restaurants were jumping on board and it’s almost like if you’re not on there, you’re losing out,” Grewal said.
But she’s now pleased with her decision to use a delivery service company and has even seen new customers ordering from her restaurant.
 Ian Tostenson, the president of the BC Restaurant and Foodservices Association, called the extension a positive move for the industry.
“It’s a major positive effect on the industry,” he said. “There’s still a lot of people that aren’t going to restaurants and we’ve changed behaviour. During the pandemic, we all realized what an awesome experience we can have at home with delivery.”
Tostenson said he hopes the province will consider exploring the idea of making the cap permanent down the road.
“I would hope the government may look at making these rates more permanent,” he said.
Amardeep Grewal, owner of Turmeric Indian Cuisine in Victoria, said she couldn’t be happier with the province’s decision to extend the cap. (Tahmina Aziz/CHEK News)
Tahmina Aziz
Nicholas Pescod
