British Columbia extends food delivery service fee cap
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British Columbia extends food delivery service fee cap

27 Sep 2021 (Last Updated September 27th, 2021 12:12)

Fees from food delivery companies to restaurants will continue to be capped at 15% until 31 December.

British Columbia extends food delivery service fee cap
Food delivery companies will have to pay regular wages to their drivers. Credit: Rowan Freeman / Unsplash.

The Government of British Columbia in Canada has further extended its food delivery service fee cap, which limits the total fees charged by food delivery companies to restaurants in the province.

The food delivery service fee cap was introduced by the provincial government on 22 December 2020 under the Emergency Program Act. It is set to expire on 28 September.

Under the Covid-19 Related Measures Act, British Columbia has extended the fee cap, which will immediately follow the expiry of the current temporary order.

With this further extension, the fees from food delivery companies to restaurants will continue to be capped at 15%.

The revised order is set to expire on 31 December and will be reviewed by British Columbia after considering the ongoing Covid-19 pandemic situation.

British Columbia Minister of Jobs, Economic Recovery and Innovation Ravi Kahlon said: “The restaurant industry has shown incredible strength and resiliency throughout the pandemic.

“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.”

An additional cap of 5% will also be extended for fees associated with the use of delivery services, such as online ordering and processing fees.

Small food delivery companies, serving less than 500 restaurants, will continue to be exempt from the order.

Delivery companies will also have to continue paying regular wages to their drivers and are not allowed to reduce compensation.

White Spot Hospitality president Warren Erhart said: “The extension of the food delivery service cap will have a significant positive impact on restaurants like ours that use delivery companies to service their customers.

“We appreciate the collaboration on this initiative as we work together to find solutions in these challenging times.”

Additionally, the British Columbia Government will continue to work with the restaurant industry in order to ensure a safe dine-in experience with the launch of the BC Vaccine Card.