TORONTO - Ontario is set to cap the fees third-party delivery apps impose on restaurants in regions where indoor dining is prohibited, in a bid to protect what profits restaurants can still make during the COVID-19 pandemic.
The Progressive Conservative government will table legislation today that would give the province the authority to temporarily limit how much apps such as UberEats and DoorDash can charge restaurants in the grey or lockdown COVID-19 restriction zone for their services, the associate minister of small business told a news conference.
"Ontario's restaurants have been bearing an incredible brunt of the financial burden of this pandemic. Some restaurants have seen traffic plummet by as much as 90 per cent," Prabmeet Sarkaria said.
"At the same time, food delivery services companies have collected up to 30 per cent in commissions from these restaurants. And they're enjoying record sales and uptake."
He said restaurants can expect to see a cap of 15 per cent on delivery fees, with a cap of 20 per cent inclusive of all fees.
It's similar to what was done in New York City, which recently capped delivery app commission fees at 20 per cent.