On-Demand Delivery Pilot Program Guidelines
PURPOSE
The Liquor Control Board of Ontario (LCBO) is launching a time-limited pilot program for On-Demand Delivery Service companies in the Ontario marketplace. This Pilot Program is for eligible liquor delivery service providers to enter into an Agreement with LCBO to use LCBO’s trademark, list a selection of products on their On-Demand Delivery Platforms, and share data. The program launched December 2022 and will be available for one-year (with a possible 6–12-month extension).
In accordance with their licence from the Alcohol and Gaming Commission (AGCO), liquor delivery service providers are currently allowed to purchase Liquor from LCBO on behalf of customers and deliver it for a fee. Although LCBO will be working with select companies as a part of this program, the remaining liquor delivery service providers may continue to make purchases in LCBO stores in accordance with their AGCO licence. For clarity, liquor delivery service Providers cannot use LCBO’s trademark without LCBO’s permission and should not issue false or misleading statements to consumers that imply they are working in partnership with LCBO.
This pilot program does not include services that LCBO would procure from a vendor through a procurement process and does not limit LCBO’s ability to issue a Request for Proposals.
OBJECTIVES
To facilitate the delivery of Liquor from LCBO retail stores and on-demand delivery services for customers in Ontario.
To enable eligible Program Participants to use LCBO’s trademark and list a selection of products on their On-Demand Delivery Platform.
To enable data sharing between LCBO and Program Participants to support service delivery and assess customer demand for on-demand delivery services.
DEFINITIONS
“AGCO” means the Alcohol and Gaming Commission of Ontario;
“Agreement” means the agreement between Program Participants and LCBO with the detailed terms and conditions of this pilot program;
“On-Demand Delivery Service” means all food ordering and same-day delivery services provided and performed by the Program Participant and its Personnel;
“On-Demand Delivery Platform” means the Program Participant’s website and/or mobile application e-commerce platform where multiple third parties provide product information and consumer transactions are processed by the Program Participant and their Personnel to facilitate online food ordering and same-day delivery services;
“Personnel” means any agent, employee, independent contractor, or subcontractor of Program Participants who fulfills customer orders;
“Program Participant” means a person or a company who meets the eligibility requirements and is issued an Agreement under this pilot program;
“Licence to Deliver Liquor” means a licence issued by the AGCO under the Liquor Licence and Control Act, 2019, S.O. 2019, c. 15 that enables an individual or an entity to provide liquor delivery services;
“Liquor” means spirits, wine, and beer or any combination of them and includes any alcohol in a form appropriate for human consumption as a beverage, alone or in combination with any other matter;
APPLICANT ELIGIBILITY
To be eligible, applicants must have:
A Licence to Deliver Liquor issued by the AGCO;
An On-Demand Delivery Platform with a significant presence in Ontario, including:
- At least 250,000 active customer accounts
- At least 1,000 retailers, bars and restaurants, and alcohol manufacturers (breweries, cideries, wineries, and distilleries)
- At least 500 Personnel to fulfill customer orders;
The ability to provide timely delivery service to customers in at least 10 municipalities across Ontario, including (1) City of London, (2) City of Ottawa, (3) City of Barrie, (4) City of Toronto, and (5) City of Hamilton (timely delivery may vary by market and may be less than one hour in large urban centers and up to 5 hours in more suburban and rural areas);
General Liability insurance in the amount of $2 million; and
Cyber Security insurance in the amount of $1 million.
Applicants are required to attest that they are able to meet all program requirements, including their ability to maintain the size of their On-Demand Delivery Platform, provide timely delivery service to customers, and comply with all applicable AGCO requirements.
The LCBO may reject an application for this pilot program if the past or present conduct of the applicant or any key individuals associated with the applicant affords reasonable grounds to believe that the applicant will not conduct business in accordance with the law with integrity and honesty.
PROGRAM REQUIREMENTS
Program Participants may use LCBO’s trademark in accordance with the terms of the Agreement and the LCBO Brand Guidelines. This includes the use of LCBO’s trademark on their On-Demand Delivery Platform and in any public-facing communications.
Program participants must meet LCBO cyber security requirements in accordance with the terms of the Agreement to facilitate online data transfers.
Program Participants are required to list only the product assortment provided by LCBO on their On-Demand Delivery Platform. Listing additional products is not permitted.
Program Participants and their Personnel must follow all applicable AGCO requirements and guidelines, including the completion of Smart Serve training and not supplying Liquor to anyone under 19-years of age or anyone who is or appears to be intoxicated.
Personnel purchasing product in LCBO stores and delivering Liquor to customers must be 19 years of age or older.
Personnel are not permitted to collect Aeroplan points on transactions that are part of this pilot program.
Program Participants are responsible for addressing all customer service issues regarding their On-Demand Delivery Service and On-Demand Delivery Platform, including returns and refunds.
Program Participants must comply with all program requirements, including those in the supporting Agreement and any guidelines issued by LCBO throughout the pilot program.
The LCBO reserves the right to change or cancel this pilot program with limited notice provided to Program Participants.
REPORTING REQUIREMENTS
Program Participants must use LCBO applications and prescribed forms to report sales made under this pilot program.
Failure to complete the required forms in their entirety and/or submit them in accordance with the Agreement will result in non-compliance and administrative action may be taken by LCBO.
Program Participants must retain all records as prescribed by the LCBO and provide these records to the LCBO upon request.
Internal and external auditors shall be granted access to all relevant records for the purpose of conducting an audit to verify and validate compliance with the terms, conditions, and requirements of the Agreement.
APPLICATION AND APPROVAL PROCEDURES
An eligible person or company seeking an Agreement under this pilot program must complete an application form in full and submit it to LCBO.
After receiving an application, LCBO will review to ensure that it is complete and assess eligibility requirements. An applicant’s past conduct with respect to LCBO may be taken into consideration in reviewing its application.
If approved, the LCBO will issue an Agreement and the applicant must agree to the terms and conditions by executing and returning it to the LCBO.
Agreements will be issued for a one-year term. Program Participants who remain eligible and in good standing may be extended for two subsequent six-month terms thereafter unless and until modified, suspended or revoked by the LCBO.