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City council to ask province to cap fees on food delivery apps

Last Updated Dec 16, 2020 at 10:51 am MDT

An Uber Eats courier is pictured as they pick up an order for delivery from a restaurant in Toronto, Thursday, Feb. 27, 2020. THE CANADIAN PRESS/Nathan Denette

CALGARY (660 NEWS) – City council will be asking the province to start capping the fees delivery apps can charge local restaurants.

Earlier this week, council voted unanimously to ask the province for a 15 per cent cap.

Council hopes this would allow local restaurants to keep more of the money from sales.

Right now some apps like SkipTheDishes, Uber Eats or Door Dash are charging up to 30 per cent for a food order.

Last Thursday, SkipTheDishes announced it would offer a support program for local restaurants using the app.

The package includes a 25 per cent rebate on commission for local and independent restaurants, a zero per cent commission rate for any new restaurants joining the network during the restriction period, and a 10.5 per cent commission for any restaurant using their own staff for delivery while still using the app.

“We know local restaurants are the heart and soul of communities across the province, and with pickup and delivery orders becoming a critical revenue stream for restaurants throughout the pandemic, Skip stands with our local partners throughout this new wave of restrictions,” said Kevin Edwards, CEO, SkipTheDishes.

“We know that Skip has become not only a tool to practice social distancing but also a way to support local businesses during the pandemic.”

The new package came into effect in Alberta on Dec. 13, the same day that restaurants were asked to close for in-person dining.