VANCOUVER SUN | COVID-19: Vancouver mayor calls for fee cap on food delivery apps

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In the article "COVID-19: Vancouver mayor calls for fee cap on food delivery apps," Stephanie lp.


Owner of Elgin Street Diner, Ron Shrybman, talks about Skip The Dishes, Saturday April 13, 2019. Ashley Fraser/Postmedia
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 COVID-19 shutdown. ASHLEY FRASER/POSTMEDIA

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 neither benefit 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 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 makes 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 Association, urging the companies behind popular food delivery apps to temporarily cap their platform commission at no more than 15 per cent.

Vancouver Mayor Kennedy Stewart speaking at city hall on April 15, 2020. Credit: Mike Bell/PNG [PNG Merlin Archive]
Vancouver Mayor Kennedy Stewart speaking at city hall on April 15, 2020. MIKE BELL/PNG files

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 Foodservices 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 on 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. 

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