December 6, 2022
By Ryan Singh, Director of Temple Scott Associates
On November 4, 2022, The Food Delivery Service Fee Act received Royal Assent in British Columbia, With over 12,594 restaurants in B.C., it became the first province in Canada, and one of a handful of jurisdictions in North America, to implement a permanent cap on fees charged by food-delivery companies, such as UberEats, DoorDash, and Skip the Dishes. Now, the fees delivery companies can charge B.C. restaurants for core services can’t exceed 20 per cent of the food order’s value.
British Columbia originally introduced a temporary cap on delivery fees in December 2020, when pandemic restrictions forced restaurants to rely on take-out orders, and delivery fees were as high as 30 per cent. The 15 per cent cap on food, plus another 5 per cent cap on additional fees, was extended twice last year and was set to expire on Dec. 31.
The Food Delivery Service Fee Act also prohibits delivery companies from reducing driver compensation, ensuring employees and contractors continue to be paid their wages and gratuities.
