Did you catch the news yesterday?
Two months after the pandemic hit, Vancouver Mayor Kennedy Stewart told delivery companies to cut restaurant fees or face regulation.
Ontario Premier Doug Ford has urged and pleaded with Uber Eats and other third-party delivery companies to reduce their fees, but it simply is not enough. Their offers of reduced fees are for a limited time and don't cover the fees built into the services that restaurants actually rely on.
Yesterday, Toronto City Councillor for Ward 1 Etobicoke North Michael Ford spoke with CP24 News to discuss a motion he's tabling at Toronto City Council this week, calling on the Province of Ontario to cap the commission fees on food delivery service companies. He said, “Keeping a strong and robust economy starts with looking after Toronto’s smallest businesses struggling to survive.”
I also spoke with CP24 yesterday about why this cap is essential to their survival. As you may know, I've been campaigning for a cap since May. With the future of indoor dining uncertain, winterized patios not a viable business plan (not everyone has a patio, unclear rules and regulations about what structures and materials are allowed, many diners won't brave the cold weather to dine out - even with the promise of heaters), heavy competition from grocery stores and meal kit offerings, and five months of freezing temps, restaurants will be depending on takeout and delivery like never before. I believe it is critical in helping them survive the winter ahead.
I saw a tweet yesterday from a Toronto businessman asking whether these delivery companies can afford such a cut. According to The Information, in August Uber said "its restaurant-food delivery revenue surpassed ride-hailing for the first time. Uber Eats revenue rose 103%, to $1.2 billion in the June quarter, and its profit margin—at negative 19%—was the unit’s best in many quarters.”
Interesting that he didn't ask whether restaurants could afford to survive without it.
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