British Columbia becomes first province to cap fees from food delivery companies

British Columbia is the first Canadian province to place a permanent cap on food delivery fees.

The Food Delivery Service Fee Act was passed by the province on Friday.

The Financial Post is part of Postmedia Network Inc.

There was an issue with signing you up. Try again.

The minister of jobs, economic recovery and innovation in B.C. said that by passing legislation to make the delivery fee cap a permanent support for restaurants, they are leading Canada in providing more stability and certainty to the sector itself.

Delivery companies can't charge restaurants more than 20 percent of the value of an order. Similar permanent caps have been enacted in U.S. cities like Seattle and San Francisco.

When the temporary cap is removed at the end of the year, business owners won't see a return of delivery fees as high as 30 percent.

Delivery companies are not allowed to reduce driver compensation, which will ensure that employees and contractors are paid their wages.

During the H1N1, takeout and delivery options for restaurants increased from 12 to 36 percent of sales.

Dpaglinawan@postmedia.com and denise.pglnwn are email addresses.