Quebec plans to legislate to force Uber Eats and Doordash to limit their prices

Quebec plans to legislate to force Uber Eats and Doordash to limit their prices

The Legault government is now considering passing a bill to force app delivery giants such as Uber Eats and Doordash to lower the fees they impose on restaurateurs stranded by the closure of their dining rooms.

According to what the QMI Agency learned, these two American companies tried to reach an agreement with Quebec on the price, which sometimes reaches up to 30% of the cost of an order, which they charge to restaurants for. their delivery services.

During the negotiations, they asked for a written commitment from the government that there would be no legislation against them, which was ruled inadmissible. What is more, according to our information, Uber Eats and Doordash proposed to reduce the costs charged to restaurants by 2 to 3%, which was not sufficient in the eyes of Quebec.

“It borders on arrogance,” commented a government source well aware of the negotiations.

For several weeks now, restaurant associations and opposition parties in Quebec have been clamoring for the adoption of a decree by the government to limit these costs.

With the restrictions currently in place to fight the COVID-19 pandemic, many restaurants have no choice but to turn to these companies since they do not offer delivery themselves.

At this point, the Legault government is rejecting the option of an executive order because it doubts it has the legal basis to do so, even though British Columbia has taken this path.

With the resumption of parliamentary work in the coming weeks, a bill could still be quickly adopted, we are told. Such an avenue would be similar to that employed by the Ford government in Ontario.

The Legault government first wanted to give the runner a chance by asking the three main delivery companies by application in the province, the American Uber Eats and Doordash and the Canadian SkipTheDishes, to limit their costs themselves.

Only SkipTheDishes, which already takes a maximum of 18.75% of the total of an order, had acquiesced to this request.

At the Association Restauration Québec, we are delighted to see the government stand up to the giants of app delivery.

“It’s not possible to live in the circumstances, so if in addition, all we have left during the curfew is to deliver and that each time we sell a plate, we lose our shirt, it’s untenable ”, explained his spokesperson, François Meunier.

He would have preferred to see the government act sooner. However, he hopes that a possible law could be put in place before the end of the curfew since everything suggests that it will be extended, especially in greater Montreal.

Eighty percent of food deliveries in the province are made by the three companies UberEats, Doordash and SkipTheDishes.

The Ontario case:

In the neighboring province, the Ford government passed legislation at the end of December to impose a cap of 15% of the cost of an order for delivery charges charged by delivery companies to restaurateurs with an overall limit of 20%, including all expenses. This measure, applied in all areas of Ontario where dining rooms are closed, affects any business that provides services to 500 or more restaurants.

The case of British Columbia:

The British Columbia government used the exceptional powers granted by the state of health emergency to pass an executive order in late December to cap the fees that the giants of app delivery can charge to restaurateurs. These are since limited to 15% of the price of an order. Furthermore, these companies cannot charge more than 5% of the price of the order to customers.

Highlights:

  • January 12: The Parti Québécois urges the government to cap the fees charged by delivery giants by application to restaurateurs as has been done in British Columbia. The Minister of Food, André Lamontagne, says he has asked companies to act on their own.
  • January 14: Quebec announces that Uber Eats and Doordash have refused to comply with its request. Only the Winnipeg company SkipTheDishes accepted, despite already limiting its costs.
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