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Cap on food delivery app fees promised by BC NDP, Liberals

Last Updated Oct 9, 2020 at 4:00 pm PDT

FILE: Food delivery apps Uber Eats, Foodora and Skip The Dishes.

The NDP would implement a six-month temporary cap of 15 per cent on delivery app fees

The Liberals also promised a 15 per cent cap but didn't provide a time limit

The BC Restaurant and Foodservices Association says restaurants need all the help they can get

VANCOUVER (NEWS 1130) —  Capping fees on food delivery apps is being promised by the BC NDP and Liberals, if elected, to help restaurants outlast the COVID-19 pandemic.

NDP Vancouver-Point Grey candidate David Eby said the party would implement a six-month temporary cap of 15 per cent on fees, which he said would protect up to 180,000 jobs as the industry struggles.

“We don’t see any reason why everybody can’t win from a strong and thriving restaurant and pub sector in B.C. These apps, like all British Columbians, will benefit from having more bars and restaurants post COVID,” he said Friday.

Eby said the NDP will only crack down on operators charging up to 30 per cent for restaurants if the industry doesn’t voluntarily cut those rates in half.

“We think that this cap is reasonable, but if these companies are not willing to do this voluntarily, we will regulate this activity in our province to ensure that bars and restaurants are protected,” he said.

The Liberals also promised to cap fees at 15 per cent, but the party hasn’t said if it is setting a similar time limit.

Ian Tostenson, the president and CEO of the BC Restaurant and Foodservices Association, said members need all the help they can get.

“It’s critically important. It will probably make the difference in terms of employment. It’s going to make the difference for a lot of small restaurants that would never do this at a 30 per cent commission,” he said.

“They’re going to be able to expand their marketplace. This is a really critical issue.”