Toronto wants to limit food delivery apps' commission fees

Oct 28 2020, 8:22 pm

Toronto City Council unanimously approved a motion Wednesday to ask the province to implement a temporary cap on commissions food delivery apps take to help local restaurants struggling during the COVID-19 pandemic.

The cap would apply to services such as UberEats and DoorDash, who take a cut of the sale price for each meal they deliver.

“Throughout the pandemic we have been urging food delivery companies to substantially help their restaurant customers so they can stay in business,” Mayor John Tory said in a news release. “While some companies have stepped up to help, we have heard from restaurants that more needs to be done right now.”

The city is asking the province to take action because the City of Toronto doesn’t have authority to implement such a cap itself. It would need provincial legislation to do so.

Other North American cities including Chicago, Los Angeles, and New York have already implemented similar commission caps.

The motion was introduced by Etobicoke North councillor Michael Ford in a bid to support “mom & pop” restaurants at risk of going out of business.

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