Food delivery service says it will cut its commission in half for some restaurants
VANCOUVER -- A food delivery company has responded to concerns from local restaurants about the commission it charges.
For many eateries forced to close their doors due to COVID-19, being able to offer delivery or takeout is keeping them afloat.
But when those orders are placed on delivery apps, the app companies charge a hefty commission. In some cases, the apps charge as much as 30 per cent.
On Friday, one owner said she feels like the apps are "exploiting restaurants."
The owner of a Vancouver-based restaurant group added his company has laid off 350 employees, but offering delivery allowed some staff to stay on.
The B.C. Restaurant Association told CTV News it had contacted major food delivery app companies, asking for lower commission.
He described the industry as "being held hostage" to consumer demands.
Door Dash told CTV News its fees would be cut in half as of Monday, though the discount only applies to restaurants and chains with five or fewer locations. This will be in effect until the end of May.
Skip the Dishes said it would offer a 30-day "support package" for restaurants that includes a rebate on commissions.
Foodora described this time as an "adjustment period," and said it frequently runs promotions including free delivery and discounted items, which are worked out with the restaurants.
But a spokesperson said commissions vary from restaurant to restaurant, so there are no city-wide rates, thus no region-specific decreases.