Tory calls on food delivery apps to reduce commissions for struggling restaurants

The Toronto mayor hopes food delivery apps will reduce commissions to help businesses amid COVID-19

Toronto Mayor John Tory has called on food delivery companies like Uber Eats and Skip the Dishes to consider reducing commissions to help struggling restaurants during the COVID-19 pandemic.

Due to the spread of the virus, Ontario prohibited restaurants from providing dine-in service in mid-March. However, many have remained open for delivery and takeout orders. Of those that stayed open, many rely on food delivery companies to fulfill orders.

Unfortunately, that comes with a problem. Tory told CP24 that food delivery apps take a large commission, which has impacted restaurants that now rely on the services to get by.

“There are restaurants that are really struggling. They welcome having the business but the commissions that are being taken from them — in the 30 percent range — are making it such that it is not a business that they can make any money off or pay any of their bills with,” Tory said.

Tory said he hopes a delivery company will take some leadership and temporarily reduce commissions during the COVID-19 crisis to help those businesses.

Further, Tory is “actively” talking with representatives from popular food delivery companies about reducing commissions.

Additionally, it’s worth noting that some companies have already reduced commissions. DoorDash, for example, reduced commissions by 50 percent last week while Skip the Dishes has offered restaurants a 25 percent rebate on commissions. Uber Eats, however, continues to charge a 15 percent commission but reduced fees for restaurants using their own delivery people and waived them for pick-up orders.

Source: CP24