Liberal MPP urges cap on delivery apps’ fees
Minister suggests no new rules, but hopes firms work with restaurants
ALiberal MPP has a tip for Premier Doug Ford: cut the hefty fees that food delivery services charge restaurants to help the pandemic-stricken hospitality industry.
Amanda Simard (Glengarry-Prescott-Russell) has written to Ford’s minister of small business and red tape reduction, Prabmeet Sarkaria, to urge a cap on the levies by Uber Eats and other delivery firms.
“I am writing today about important issues restaurant owners are facing with some food delivery services and the commission they are charging during the ongoing COVID-19 pandemic,” wrote Simard.
“Some of these platforms are charging up to a 30 per cent commission on sales during a time where restaurants are dependent on delivery services as they are not able to physically be open and serve Ontarians,” the Liberal MPP continued. “This fee is impacting numerous small business owners across Ontario and impacting their ability to pay staff and cover critical operating expenses such as rent. Many of these businesses are at risk.
“Other jurisdictions, such as New York, have tabled and are in the process of passing legislation to cap the fees that can be charged by delivery services to ensure that restaurants can survive.”
To that end, Simard requested Sarkaria “consider issuing an emergency order limiting these commissions to 15 per cent, as New York City has done, while Ontario’s state of emergency is in effect.”
In an email to the Star, the minister reminded the companies “we’re all in this together” and implored them to be reasonable.
“Food delivery platforms have become a vital part of ensuring some of our local restaurants stay in business,” said Sarkaria, suggesting the government will not consider any heavy-handed intervention.
“It’s my hope and expectation that these platforms will work as partners alongside hardworking local businesses so that we shoulder the weight of this recovery together,” he said.
The province has been in a state of emergency since March 17 and that was recently extended to June 2.
During the crisis, restaurants and bars are only allowed to serve takeout meals, although Ford loosened liquor licensing laws to permit them to sell wine, beer and spirits to go.
That popular measure is temporarily in place until Dec. 31, though Progressive Conservative officials privately admit it will be difficult to remove because Ontarians will be accustomed to the convenience and hard-hit restaurateurs will need the revenue.
Simard sent copies of her request to Sarkaria to Toronto Mayor John Tory and to Tony Elenis, president and CEO of the Ontario Restaurant, Hotel and Motel Association as both have criticized the food delivery fees by Uber Eats, SkipTheDishes and DoorDash.
While some companies have voluntarily cut their charges, Simard said government direction is required.
Simard made headlines in November 2018 when she resigned from the Conservative caucus.