New York and LA have capped delivery app fees at 15% so why hasn't Toronto?

Even in the face of the pandemic and widespread closures, some third-party delivery apps continue to make the situation more difficult for restaurants with huge commission fees.

New York, Los Angeles and San Francisco each temporarily capped commission fees at 15 per cent to help ensure businesses are better positioned to utilize the apps while they've had to close dining areas and move to delivery and takeout only.

But Toronto has yet to introduce such a measure, even after local restaurants have consistently raised concerns about the upwards of 30 per cent commission delivery apps take from each order.

Mayor John Tory spoke on this issue to The Toronto Star back in April, saying that he's been in contact with folks from both sides of the table to discuss it.

His office reiterated this position in an email to blogTO, saying that "over the period of the pandemic, the mayor has advocated on behalf of the City’s small businesses for support and reduced service fees from food delivery companies."

"He believes that food delivery companies have the capacity to reduce service fees and alleviate the burden off small businesses who are dealing with reduced customers and revenue while having to continue to pay their bills."

But according to the Star, jurisdiction issues on multinational corporations are part of what's preventing the city from reducing fees for many of the U.S.-based apps.

Additionally, Tory's emergency powers do not legally allow him to impose a temporary cap.

Instead, a petition calling for Ontario Premier Doug Ford to step in and help improve the situation for Toronto and GTA businesses as been launched while several restaurants have begun delivering food themselves.

Others have boycotted delivery apps like Uber Eats or have gotten rid of it altogether.

SkipTheDishes and DoorDash have both lowered their delivery fees for the time being, but a formal cap in Toronto seems unlikely.

In the meantime, Tory said he will "will continue to advocate and call on food delivery companies to provide support during these challenging times."

by Lisa Power via blogTO