Ontario puts Uber Eats and others on a diet, caps commissions charged to restaurants

A sign intended for Uber Eats drivers in Ottawa's Little Italy.

ONTARIO — Food delivery companies in Ontario will soon have their charges capped at 15 percent by the provincial government’s new legislation. The new ceiling applies in grey zone (lockdown) regions.

App-based, “shared economy” companies like Uber Eats and Skip the Dishes currently take up to a 30 percent cut of the action from participating restaurateurs, according media accounts.

The Supporting Local Restaurants Act, 2020, passed last week (December 2nd) comes as COVID-19 cases rise across the province and restrictions tighten, making it incredibly difficult for restaurants to continue operating.

The government says its approach will protect the income of delivery drivers, without reducing service areas or restaurant selection. Delivery companies that do not comply with the law will be subject to fines of up to $10 million. The Lieutenant Governor has yet to name the date when this legislation will come into force.

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