BC permanently limits food delivery rates for apps like SkipTheDishes and DoorDash

BC is kicking off the new year with the introduction of first-ever shipping caps for companies like SkipTheDishes and DoorDash.

From 1 January 2023, restaurant owners will have more certainty about overhead costs.

Brenda Bailey, Minister for Jobs, Economic Development and Innovation, does not want to see restaurant owners struggling to turn a profit unfairly charged by food delivery companies.

“We all have our favorite local restaurants where we celebrate as family and friends, eat the foods we love and get a taste of home,” said Jobs Minister Bailey.

“When restaurants were being unfairly charged, our government acted quickly and put a temporary cap on delivery service fees. We are excited to introduce a new cap.”

The Canadian government passed the Food Delivery Service Fees Act on November 3, responding to delivery companies charging restaurants at least 30% of the value of an order during the COVID-19 pandemic.

This was the first permanent cap to replace the temporary cap originally imposed in December 2020.

Now, with new caps in place, delivery companies can’t charge restaurants more than 20% of the dollar value of an order.

The new law also gives restaurants the opportunity to step up the services offered by delivery companies if they choose to do so.

In addition to defending restaurants, the new law also protects delivery drivers. This ensures that companies do not add fees to their drivers. Delivery employees and contractors are now guaranteed full wages and any tips they earn go their way.

Parliamentary Secretary for Labor Janet Routledge said it has become increasingly important in the course of the COVID-19 pandemic to protect delivery drivers’ wages while the businesses in which they are employed are booming. I noticed.

“App-based delivery operations have increased dramatically over the last few years, but we need to ensure that our employees are treated fairly,” said Routledge.

“It was a priority to include protections for food delivery workers in this law to prevent the costs of the delivery cap from being passed on to employees.”