Cap fees on delivery apps, says Stewart
Vancouver Mayor Kennedy Stewart is calling for a fee cap on delivery apps that have been both a blessing and a curse for many local restaurants during the COVID-19 shutdown.
In a wide-ranging news conference Thursday, Stewart noted how food-delivery apps have been a lifeline allowing restaurants to stay in business while closing dining rooms and adjusting to new physical distancing and heightened cleaning protocols.
However, some come with high service costs to the restaurant, or collect fees that benefit neither the restaurant nor the delivery person. With pandemic orders to stay home and physically distance, food-delivery apps have exploded in popularity and revenue.
“Home delivery and takeout services have been vital for restaurants and cafes to earn some revenue and keep their kitchen staff working during COVID-19,” said Stewart.
“Delivery apps played an important role in connecting restaurants and customers, yet this connection comes at a very high cost.”
Stewart noted that some apps charge restaurants up to 30 per cent in addition to a delivery fee paid by the customer.
“These fees are much too onerous for restaurants and cafes and make it hard for them to earn enough to keep their doors open and staff working,” he said.
The mayor then boosted a call by the B.C. Restaurant and Food Services Association, urging the companies behind popular food-delivery apps to temporarily cap their platform commission at no more than 15 per cent.
Failing action from the companies, Stewart vowed to work with senior levels of government to explore possibilities for regulating the quickly growing industry.
“In many cases, for many establishments, this small change can mean the difference between our favourite restaurants being open or closing forever.”
The B.C. Restaurant and Food Services Association spoke out during the early weeks of B.C.’s state of emergency declaration, reaching out to delivery-app companies and seeking lowered fees for the industry.
In mid-March, Uber Eats announced it would waive delivery fees for customers of thousands of local restaurants in a bid to encourage patronage of local eateries. It also offered local restaurants flexible payment options, to allow for a more reliable source of cash flow.
DoorDash has also waived delivery fees for many restaurant partners and will launch its campaign Local Restaurant Saturday in June to drive additional orders.