Vancouver cafe warns other businesses after Uber Eats increases delivery fees to pre-pandemic levels

The owner of a Vancouver-based bakery and cafe says Uber Eats quietly increased his delivery fees to pre-pandemic levels while he believed his rates couldn't increase because of a fee cap implemented by the B.C. government.

Uber Eats said businesses were contacted by email about the increaseand needed to opt-out of higher fees.

SergioSalamonovitz, the owner ofTrafiq Cafe & Bakery, said it was thanks to a missing sandwich order that he noticed Uber Eatsincreased his fees by nine per cent between January and February 2023.

At the height of the pandemic, many Canadian provinces, including B.C., instituted a 20 per cent cap on what food delivery apps could charge restaurants for basic delivery servicesin the hopes of keeping the ailing industry afloat.

In November 2022, B.C. instituted Bill 33, becoming the only province to make the 20 per cent delivery cap permanent. Under the bill, food delivery services arestillallowed to charge over 20 per cent of an order's value for restaurants that wish to pay for premium services, like renting a tablet or being promoted on their apps.

Salamonovitz estimates that with the nine per cent spike, he's lost about $3,500 since February and worries other restaurants in B.C. may be paying more than they're aware.

"It's a big chunk of change," he said, adding that while he had noticed income from delivery orders had dipped slightly every week, he assumed inflation was digging into customer spending.

"For me, you're looking at $30 in a day, maybe $40. So at the end, maybe instead of $1,600, you did $1,500 in sales.You're going, 'OK, things are tougher. We are noticing people being more cautious with their money.'"

On May 1,Salamonovitzcontacted Uber Eats, alerting them he was being charged more than what is allowed for basic delivery in B.C.

In an email viewed by CBC News, an Uber representative wrote, "I have confirmed with our internal teams that the marketplace fee cap has been removed since February 2023. There is no additional information I can offer at this time."

"As for your request to talk to a supervisor, I would like to inform you that this is the highest support level that you can reach out to," read the email.

Watch | Vancouver cafe owner speaks about Uber Eats delivery fees

Vancouver cafe owner warns businesses of Uber Eats fees

1 year ago

Duration 1:11

Sergio Salamonovitz, owner of Trafiq Cafe & Bakery, speaks out after Uber Eats allegedly raised delivery fees to more than 20 per cent of an order's value.

Requirement to opt out of higher fees

After a CBC News request for information, Uber Eats issued an apology to Salamonovitzfor not offering a return to the 20 per cent fee. It clarified to CBC News it was not apologizing for the comment made by the employee that B.C. had removed the fee cap.

Ubersaid in a statement that it is compliant with Bill 33"but gives restaurants the choice to select and pay for additional services if that suits their business needs."

"To assist restaurants through the transition to the new regulationthrough January, we offered a full month of enhanced services at a maximum 20 per centfee. Throughout that month, restaurants were able to decide if they wanted to continue with enhanced services at their previously negotiated fee or sign up for a different plan based on what works best for their business," wrote Uber representative Keerthana Rang.

Uber Eats saidTrafiq Cafe & Bakery was emailed about the upcoming change in fees and initially registered with Uber Eats with an agreement to pay 30 per cent.

"However, when the restaurant reached out to our support team, support should have walked them through the 20 per centand other options. We are following up directly with the restaurant to resolve this," said a statement from Uber.

But Salamonovitz said he never received a warning about the need to opt out of higher fees, nor did he receive information from Uber Eats about different fee options when he registered.

He said he worries other restaurants may be unaware that their fees have returned to pre-pandemic levels, despite the existence of a cap for basic delivery.

"The deposits are done automatically, so we don't check. So I have to assume there are many more like me," he said.

"I think it's very frustrating that a company that is that big is allowed to operate without any controls, without any supervision from our government."

Salamonovitzhas since cancelled his business account with Uber Eats and moved to another delivery service.

"We work for them, Uber Eats or any delivery app. It's our partner in doing business, and they take a percentage of it, and we all agree to it. That's fine, but at the end of the day, we need to be aware that they're not playing fair."