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Ontario government stops food delivery companies from gouging restaurants

Food delivery is just one of the many “new normal” aspects of lockdown life.

As happens when something becomes en masse and essential, there’s a potential for profit. Case in point: delivery fees.

Personally, I didn’t know this was an issue. Nevertheless, the Ontario government has introduced a cap on fees charged by food delivery companies.

Apparently, UberEats, DoorDash and SkipTheDishes charge restaurants fees up to 30 per cent per order. So if you your favourite pizza joint sells two pizzas for $30, $9 of that might go to a third party.

The new law will cap delivery fees charged to restaurants by third parties at 15 per cent in areas where indoor dining has been banned. It’s an issue Doug Ford’s government has confronted more than once during the pandemic.

“With this legislation, our government is helping local businesses stay in business, and providing a solution that will help our local restaurants when every little bit helps,” Prabmeet Sarkaria, the associate minister of small business and red tape reduction, said in a statement. Quick pause for a moment to appreciate the existence of this ministry. More ministries to reduce red tape, please.

Meanwhile, delivery companies aren’t stoked. Skip the Dishes chief executive Kevin Edwards said he is disappointed in the government’s regulation of private enterprise. Both UberEats and DoorDash say they will work together with the government.

And don’t forget: tip your delivery person!

Christian Nathler

Christian Nathler is a contributing writer at Notable Life.