BC government extends cap on food delivery fees

The BC Government has extended an order which caps fees charged by food delivery services in the province.

The order, which limits the fees food delivery companies can charge, was brought in during the COVID-19 pandemic to assist the restaurant industry, and will now be extended to December 31, 2021. The current order was set to expire at midnight on Tuesday (Sept. 28).

Fees will continue to be capped at 15 per cent, and an additional cap of 5 per cent will also be extended for other related fees associated with the use of the service – such as online ordering and processing fees.

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

Small-delivery service businesses that serve less than 500 restaurants will continue to be exempt from the order. The order also prohibits delivery companies from reducing compensation for their drivers, allowing employees to continue to be paid their regular wages.