As the price of fuel continues to increase globally, Canada’s current average cost is about $1.70 per litre. In today’s economy, research shows that 40 per cent of restaurants are operating at a loss, and the cost of fuel could further challenge operators with delivery options.
Restaurants that provide their own deliveries may need to adjust operations to accommodate the rising costs. Can they raise the prices to try and recoup some of the additional expenses or will that deter customer orders? Can they adjust the delivery boundaries to better protect their margins?
This challenge may encourage some operators to search for less expensive delivery alternatives, like autonomous vehicles or robots, to reduce delivery costs. Some companies, like Chipotle, are already testing out some alternatives with drone delivery, partnering with Zipline in Dallas, to fly digital delivery orders to customers, eliminating the need for fuel and offering a zero-emission delivery system.
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For third-party delivery companies, the challenge may come in finding drivers, who typically work as independent contractors. These drivers may take on fewer deliveries or limit longer trips to best maintain their margins.
To try and help, DoorDash recently announced the launch of an emergency relief program in Canada for delivery drivers who use their own vehicles to make deliveries. Based on estimated distance travelled while completing deliveries, delivery drivers, called Dashers, will receive an additional $1.50 per 50 kilometres driven from March 23, 2026, to April 26, 2026, up to $36 per week. This equates to approximately $0.36 per litre in savings for Dashers, based on average vehicle gas efficiency of 12 kilometres per litre. The program is automatic, without the need to opt-in, and it is being entirely funded by DoorDash, eliminating any additional fees for consumers or merchant partners.
“Rising gas prices have a real impact on Dashers, especially those who are delivering the most. This program is about giving Dashers real savings at the pump,” said Cody Aughney, Vice President, Dasher and Logistics at DoorDash.
As fuel prices continue to rise, the future of restaurant delivery will need to be adjusted to continue to make it affordable for consumers and profitable for operators and third-party delivery companies, likely shifting toward a more localized and automated model.
