The first ever permanent cap on the fees that delivery services like DoorDash and Uber Eats can charge restaurants goes into effect on January 1st, 2023.
When it comes to working with food delivery services, restaurant owners in British Columbia will soon have more assurance over their business costs.
Brenda Bailey, minister of jobs, economic development, and innovation for British Columbia, noted that everyone has a favorite neighborhood restaurant where they gather with family and friends to celebrate, eat their favorite meals, or simply get a taste of home.
“Our government acted quickly to put a temporary ceiling on delivery-service prices after learning that eateries were being charged unfair rates. We’re eager to implement a permanent cap in the coming year so that eateries will receive greater help.
According to the B.C. government, the new permanent cap limits the fees delivery businesses can charge restaurants to no more than 20% of the value of an order.
Early in November, the Food Delivery Service Fee Act was passed in reaction to delivery services charging up to 30% of the order’s value during the pandemic.
The new act also protects drivers by prohibiting delivery companies from charging them additional fees.
Other adjustments made by the B.C. government to assist the industry include:
- The authorization of thousands of temporary patios.
- Increasing access to the small-business corporate income tax rate by raising the ceiling from $15 million to $50 million in taxable capital
- Bars and tourism operators with liquor licences can permanently purchase beer, wine and spirits at wholesale prices.
