Business seems to have slowed down for app-based restaurant deliveries in Vancouver, and for industry leader and spokesperson Ian Tostenson, this observation can be attributed to fee increases that have been passed on to consumers.
Last September, new regulations were put in place by the provincial government in an effort to ensure fairer work treatment for app-based ride-hailing and delivery workers across 小蓝视频
The rules, which applied to platforms such as Uber Technologies Inc. and UberEats, established for workers a minimum wage of $20.88, coverage from WorkSafe小蓝视频 and additional compensation per kilometre. The changes were made after gig workers and others raised concerns about unpredictable pay and price transparency.
In June of that year, Tostenson, president and CEO of the 小蓝视频 Restaurant and Foodservices Association, said the industry was “cautiously pessimistic” towards the new regulations, at the time raising concerns over possible price hikes for food deliveries and lower demand for restaurants.
When similar regulations were set in Seattle in January 2024, data from Uber showed a 30-per-cent decrease in UberEats orders, with delivery drivers spending 30 per cent more time waiting for delivery requests.
Almost a year later, Tostenson told BIV that industry appears to be experiencing a slowdown.
“Increased cost and decreased business — it’s pretty basic economics,” he said. “People are very price conscious when it comes to how much they pay for delivery.”
He said an economic slowdown in 小蓝视频 is also aggravating the situation, but to a lesser extent.
When it comes to the usage of app-based delivery platforms in the province, Tostenson estimated 12 per cent of total pre-pandemic restaurant sales were for delivery. Today, this number sits at an estimated 35 per cent.
“It’s been very well embraced and it seems to be staying at that level,” he said.
Uber driver Kamal Sharma says it is hard to tell if ride prices have gone up for customers because of constant price fluctuations. However, he said his earnings have gone down by at least 20 to 25 per cent since new regulations came online.
Part of this can be attributed to WorkSafe小蓝视频 fees, which are now being deducted per ride, he said.
Sharma said the newly established minimum wage of $20.88 is only applied for active work, meaning the time between when the driver picks up a client and drops them off.
“What the workers were actually demanding was the online time,” he said. “We go online and look for rides — roaming around, wasting our gas … That time is not taken into consideration.”
When it comes to demand, he said he has observed a gradual decrease, adding that “the supply of drivers is more than the demand.”
In an emailed response, Uber said the company was supportive of the majority of the government regulations implemented in September, but continues to have concerns about the “incredibly expensive mileage expense rate” set by the province.
In the wake of the regulations taking effect, Uber implemented a $2 fee on delivery orders to offset higher pay and mileage expense costs. This can result in fewer orders for merchants and opportunities for delivery people, Uber said.
For ride-hailing services, drivers are now shown the drop-off location and their potential earnings upfront before accepting a trip, something that could influence whether drivers accept a trip and therefore affect rider wait times, the company said.
Consumer uncertainty, worker shortages hit sector
In March, wide-reaching U.S. tariffs on Canadian goods contributed to economic uncertainty across industries and throughout the province. Though the full impact of ongoing tariffs — and of consumer and business hesitation in response — is not yet known, Tostenson says the restaurant industry is feeling some pressure.
“We’re starting to hear business is not as robust as it normally is at this time of year,” he said, noting that consumers may reduce their spending in the weeks and months ahead.
At the same time, warmer temperatures and the start of patio season could boost sluggish numbers, said Tostenson, who estimates having a patio could increase an establishment’s sales by up to 30 per cent.
“If you combine that with some good weather, we should be in pretty good shape,” he said, adding the industry expects a greater influx of domestic clientele not travelling abroad for the summer and perhaps greater numbers of U.S. visitors amid ongoing trade tension.
In reaction to the federal election on April 28, Tostenson highlighted that reduced immigration has contributed to a shortage of skilled labour in kitchens across the province. By his estimate, the province is short around 15,000 to 20,000 such positions.
As a result, restaurants may not be functioning at high efficiency, and closures or shorter hours of operation may help businesses get through operational challenges.
“We need the federal government to take a look at this and analyze immigration needs on skilled labour by sector,” he said. “That’s going to be a big challenge for us.”
