Food delivery outfits warned about overcharging

[snoop1130]

Food delivery outfits warned about overcharging

By The Nation

 

 

Authorities are monitoring food delivery services after customers complained of being overcharged amid the ongoing virus pandemic. The Office of the Trade Competition Commission (OTCC) said it will look for evidence that the services were exploiting high demand and their dominance in the market to raise their prices during the period of lockdown.

 

After being ordered to halt eat-in services as part of measures to combat the Covid-19 outbreak, restaurants are now selling food through delivery platforms. This has sparked complaints that the large delivery service providers have increased their charges by as much as 35-40 per cent and added additional fees, including for promoting restaurants to customers. The higher fees are likely to be passed on to customers.

 

Somsak Kiatchailak, permanent secretary of the OTCC, revealed that his officials have been closely monitoring food delivery firms for signs of illegal behaviour. If they detected unfair trade practices resulting in damage to other business operators, the OTCC would penalise offenders by fining them 10 per cent of their annual income, he warned. Meanwhile, any company found to be unfairly exploiting its power over the market or collaborating to fix service rates to create a monopoly or reduced competition, faced criminal action with penalties of up to 2 years in prison and/or a fine of 10 per cent of annual income.

 

Source: https://www.nationthailand.com/news/30385214

 

-- © Copyright The Nation Thailand 2020-04-01

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[Galactus]

Foodpanda gets 45% just raised ! Grab gets 35% and today dropped it to 30%.

Others the same.

And additional fees now. 

Both these companies are foreign ones and sucking the blood of locals businesses.

Taking opportunity of the coronavirus crisis.

Same as some stockers raising the price of eggs

 

These companies exist just bc some are lazy a s. s to walk 50 meters downstairs.

Just call the restaurant directly and never use these bloodsucking services.

[OneeyedJohn]

They are rampant where I live, congregating in parts of town similar to the gangs of motorbike taxi.

 

I wouldn't dream of eating anything they deliver.

[UKJASE]

anyone's wife / girlfriend using these services to sell her own food from their own restaurant?

 

if so - are you allowed to list the food items at a higher price than they are sold for in the restaurant, so as to somewhat cover the delivery fees?

 

my girlfriend wants to join up, but her profit margins are so small at the minute, that she would lose money if food panda / grab etc took in the region of 30%

[ChipButty]

14 minutes ago, UKJASE said:

anyone's wife / girlfriend using these services to sell her own food from their own restaurant?

 

if so - are you allowed to list the food items at a higher price than they are sold for in the restaurant, so as to somewhat cover the delivery fees?

 

my girlfriend wants to join up, but her profit margins are so small at the minute, that she would lose money if food panda / grab etc took in the region of 30%

I know some friends in Phuket town who have a good restaurant well known one and they said they dont use any of them as getting paid was also a problem, I wouldn't be paying anyone 35%, 

[jimmjam]

28 minutes ago, UKJASE said:

anyone's wife / girlfriend using these services to sell her own food from their own restaurant?

 

if so - are you allowed to list the food items at a higher price than they are sold for in the restaurant, so as to somewhat cover the delivery fees?

 

my girlfriend wants to join up, but her profit margins are so small at the minute, that she would lose money if food panda / grab etc took in the region of 30%

My wife was talking to someone who has their business on it, i believe they have to wait a month to get paid and then foodpanda take 35% from it, if i remember correctly. When we order and pay, this money doesnt go straight to the vendors it goes to food panda and then food panda pays the vendors in a months time.

[Is this real]

And, yet, True Visions is charging billions extra, EVERY MONTH, to provide sports broadcasting when there are no sports to broadcast.

 

Every month!

 

Why are they allowed to do so?

[Galactus]

5 hours ago, jimmjam said:

My wife was talking to someone who has their business on it, i believe they have to wait a month to get paid and then foodpanda take 35% from it, if i remember correctly. When we order and pay, this money doesnt go straight to the vendors it goes to food panda and then food panda pays the vendors in a months time.

 

And I guess use all that money for a month to get some financial gains. 

 

[UKJASE]

this article says that Grab pays its restaurants the following day

 

https://www.khaosodenglish.com/news/bangkok/2020/04/01/grab-reduces-restaurant-commission-fee-after-uproar/

[Trip Hop]

I looked at Foodpanda a few weeks ago for the G/F’s restaurant before all this kicked off, after the son said it was becoming popular. They take 35% and the contract stipulates that the price you advertise with them must be the same as your in-house menu although I don’t know if they mean your delivery menu if you have one? Payment is monthly as you state. 
 

Looked at Grab then about a week ago when I could see what was coming. They wanted somewhere in the region of 40% but payments were next day.

 

Spoke to the G/F about possibly getting her own bike and she said as it wouldn’t be worth it as no-one will have any money now and therefore everyone will be at home eating Mama noodles and egg if they can buy any? I think she’s right because she’s decided to use this quiet time to just shut up shop and have a rest?

[NiwPix]

On 4/2/2020 at 10:10 AM, UKJASE said:

anyone's wife / girlfriend using these services to sell her own food from their own restaurant?

 

if so - are you allowed to list the food items at a higher price than they are sold for in the restaurant, so as to somewhat cover the delivery fees?

 

my girlfriend wants to join up, but her profit margins are so small at the minute, that she would lose money if food panda / grab etc took in the region of 30%

From experience in Ubon, it may be different in Huahin or may be different from sales rep to sales rep:

 

Grab starts in cities with 20%. Once they have a good selection they bump it up to 30% and recently increased to 35%. However, a couple days announced they will lower to 30% until the end of the year....wow, thank you so so much...

They do allow markup on your menu. With Grab you will need an Android phone with wifi or data to install the merchant app and receive orders.

Foodpanda is at 30% and allow markup too, but it needs to be on the "down low". You dont tell them that you marked up, they wont ask. They do want to see a picture of your menu though. Just print a new one with the delivery prices and send it to them. Foodpanda will provide you with a device to receive the orders and print them out if you want. From initial meeting / contract signing to being live was about 2-3 weeks. However, this was shortly before the Covid crisis.