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Briefing

Ontario proposes legislation to cap food-delivery-app fees

Restaurants that have been forced to shut their doors in the wake of the second COVID-19 wave might soon get some respite. In regions where indoor dining is prohibited because of the second COVID-19 wave, the government would put a 15 per cent cap on the delivery fees apps like Uber Eats and DoorDash charge restaurants, and 20 per cent for all fees. (The Logic)

Briefing

Ontario proposes legislation to cap food-delivery-app fees

By Vanmala Subramaniam
Nov 26, 2020
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Restaurants that have been forced to shut their doors in the wake of the second COVID-19 wave might soon get some respite. In regions where indoor dining is prohibited because of the second COVID-19 wave, the government would put a 15 per cent cap on the delivery fees apps like Uber Eats and DoorDash charge restaurants, and 20 per cent for all fees. (The Logic)

Talking point: Certain delivery apps like Uber Eats charge up to 30 per cent in commission, according to the Ontario Restaurant Hotel and Motel Association. Prabmeet Sarkaria, the province’s associate minister of small business, said fines of up to $10 million could be levied on food-delivery firms that do not obey the cap. SkipTheDishes recently reduced its fees in some regions, and New York City has passed similar legislation to the one Ontario has proposed, capping fees at 20 per cent. Ontario’s proposal comes a week after the province announced a $600-million relief package to help businesses mandated to close with their fixed costs like property taxes, electricity and natural gas.

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