'These new regulations are significantly increasing our operating costs'
DoorDash customers will have to shoulder at least part of the cost brought about by the changes to British Columbia’s rules around gig work in the province.
The food delivery company has announced it is imposing a new “regulatory response fee” to offset the increased cost to business in the province.
“These new regulations are significantly increasing our operating costs,” said the employer in a press release.
Beginning Oct. 1, all delivery orders placed through DoorDash in B.C. will include a new fee of $0.99 for restaurant delivery orders and up to $2.99 for all other delivery orders, it said.
“This regulatory response fee will be clearly communicated to consumers the first time they open DoorDash after the fee is implemented, and it will be displayed at check-out. This fee will apply in addition to any applicable delivery, service, and expanded range fees. Customers may also see increased service fees for delivery orders,” DoorDash said.
Protections for gig workers
B.C.’s regulations meant to provide fairness, minimum-wage measures and basic protections for app-based ride-hailing and delivery workers took effect last month. Under Bill 148, employers must pay these gig workers a minimum wage of $20.88 per hour for engaged time. That is 120% of B.C.’s general minimum wage, which currently stands at $17.40 per hour.
The gig work regulations in B.C. apply to those who work for apps such as DoorDash, Uber, Lyft, Uber Eats, SkiptheDishes, and others. In B.C., there are about 46,000 gig workers, according to Global News.
DoorDash explained that the new guaranteed wage while on delivery does not count tips and mileage and is just a minimum, so delivery workers still have the opportunity to earn even more.
Talking about the new regulatory response fee, DoorDash said: “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.”
In response to the changes announced by DoorDash, BC New Democratic Party leader David Eby re-emphasized his support for 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 on Wednesday, according to a CTV News report.
"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."
‘Reasonable’ pay rates for gig workers
Meanwhile, the Canadian Federation of Independent Business (CFIB) called on the B.C. government to make more conscientious regulations that factor in small businesses making a living along with its employees.
With the current regulations in place, small businesses are forced to choose between shrinking profit margins and raising costs, said CFIB Senior Policy Analyst Emily Boston in the same CTV News report. That ultimately diminishes a competitive market and strains a business' bottom line, he said.
"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.
Around nine million Canadians say they are part of the gig economy, equivalent to 28% of the country’s population, according to a previous report.