Ontario Wants To Stop Delivery Apps From Charging Local Restaurants Too Much Money

The provincial government is stepping in and attempting to stop Ontario's food delivery apps from charging too much money to local restaurants. 

The Supporting Local Restaurants Act, announced on Thursday, would cap food delivery fees at 15% and all fees at 20% in an effort to keep costs lower for restaurants who aren't able to open up their restaurants for dine-in due to COVID-19 restrictions.

If the legislation is passed, food delivery apps that don't comply with the act could face fines of up to $10 million.

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15% Max delivery fee that takeout apps could charge

The province also says they'll ensure that food delivery workers don't lose money after the act has been passed.

Currently, some companies can charge up to 30% for their delivery services, according to the province. 

Food delivery apps have been a hot topic in Ontario as of late, and in October Toronto Mayor John Tory said they were "sucking the blood" out of small businesses.

"I think these companies that get their business, whose customers are the very restaurants that are suffering, should be stepping forward as a matter of good corporate citizenship and just sound business," Tory said.

If passed, the act would allow businesses to file online reports to alert the province to excessive fees from food delivery apps.