DoorDash is increasing fees in British Columbia in response to recently passed provincial legislation.
The international food delivery company said new regulations that increased employee wages have significantly impacted operating costs.
“Beginning Oct. 1, all delivery orders placed through DoorDash in B.C. will include a new regulatory response fee of $0.99 for restaurant delivery orders and up to $2.99 for all other delivery orders,” wrote DoorDash in a statement.
In June, the BC NDP announced that the province had finalized regulations to provide fairness, minimum-wage measures and basic protections for app-based ride-hail and delivery workers. The measures came into effect Sept. 3.
DoorDash says its drivers now earn at least $20.88 per hour before tips, plus an additional 35 cents per kilometre during the time spent on each delivery.
The company wrote that the new guaranteed wage is 20 per cent higher than the current regular minimum wage in B.C., which is $17.40.
“We recognize that this is a significant change, but it is necessary to cover the higher costs caused by the province’s new regulations and to continue providing a high-quality experience,” Wrote DoorDash on Tuesday.
On Wednesday, BC NDP leader David Eby addressed DoorDash’s fee hike in response to his party’s legislation by doubling down on the decision to support gig workers.
“We used to have the lowest minimum wage in Canada, and now we have the highest and one of the lowest unemployment rates,” said Eby.
“Part of the secret of the province is supporting our people and that’s the same if you’re a DoorDash driver or an executive somewhere downtown.”
The Canadian Federation of Independent Business (CFIB) told CTV News that these added fees force small businesses to choose between shrinking profit margins and raising costs, which ultimately diminishes a competitive market and strains a business’ bottom line.
CFIB Senior Policy Analyst Emily Boston says a solution is for the province to make more conscientious regulations that factor in small businesses making a living along with its employees.
“Of course we want to see worker standards and pay increases, but at a reasonable rate so small businesses can absorb these costs that are completely unmanageable,” said Boston.
In the coming months, depending on the regulation’s impacts, DoorDash believes it may have to make further changes that could further impact everyone who uses the platform.
In the meantime, the company says it will continue to engage with policymakers and focus on serving local communities across the region.