Ontario Premier Doug Ford has asked food delivery companies like Uber Eats and DoorDash to reduce the cut they take from restaurants, threatening to take action if they don’t.
“Don’t be greedy, because I can’t stand when people are greedy,” Ford said. “Don’t charge these restaurants upwards of 30 percent.”
With the ongoing COVID-19 pandemic and the growing second wave sending some areas of the province back into lockdown, many restaurants now find themselves relying again on food delivery companies to keep them afloat. However, many users don’t realize that these companies take a cut of orders — in most cases, around 30 percent — while also charging users delivery fees.
CTV News spoke with restaurant owners in Ottawa who were placed under new restrictions over the weekend, where restaurants can now only offer takeout. Thanks to those restrictions, restaurants now rely on food delivery services. One owner, Dave Mangano, explained that when the restaurant is fully open, the 30 percent fee is “just a cost of doing business,” but when it’s the only way to do business, the fee takes a huge chunk of his revenue.
It’s worth noting, however, that some delivery companies have changed or adjusted how they charge fees because of the pandemic. Uber Eats, for example, stopped charging delivery fees for local, independent businesses, but continued to charge them for chain restaurants like McDonald’s. While that helps customers, it does nothing for restaurants who still have to pay 30 percent.
The premier warned food delivery businesses that if something doesn’t change, he’ll take a stand.
“These delivery companies, they’re making a fortune,” said Ford. “I always ask nicely. Then I start begging. And then I put down the hammer.”
Source: CTV News
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