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Crisis Management: Why capping food delivery fees is a terrible idea

Toronto's city council recently voted unanimously in favour of a motion asking the province to put a temporary cap on commission fees for food service delivery companies like Uber Eats and Skip the Dishes. This came a few weeks after Ontario Premier Doug Ford urged companies to consider reducing fees for struggling restaurants that were forced to shut indoor dining because of the COVID-19 pandemic.

"Throughout the pandemic we have been urging food delivery companies to substantially help their restaurant customers so they can stay in business," Toronto Mayor John Tory said.

"While some companies have stepped up to help, we have heard from restaurants that more needs to be done right now."

But business strategy expert Mark Satov tells Yahoo Finance Canada's Alicja Siekierska that putting caps on commission fees is a terrible idea, and that the government has no business intervening in this way.

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