Price structure coming for food-delivery operators

[webfact]

Price structure coming for food-delivery operators

By THE NATION

 

 

The Commerce Ministry has ordered food delivery business operators to submit their price structures as well as measures regarding Covid-19 prevention to ensure transparent pricing and the safety of customers and delivery staff.

 

Department of Internal Trade deputy director-general Prayote Pensut said the order aims to set a standard for the food delivery business that has become increasingly popular amid a government lockdown and curfew.

 

“Plus, we want to make sure there are no price hikes without prior notice to take advantage of customers in time of need,” he said.

 

The department expects to publish a price structure for all operators on its website this week.

 

“We have organised a meeting with Grab, Lineman, Lalamove and Get to discuss the situation, while these operators agreed to not increase fees in this Covid-19 situation,” said Prayote. “Although the Commerce Ministry has no policy to prohibit them from increasing fees, we urged them to be transparent and clearly inform customers of service fees before taking orders.

 

“Furthermore, we emphasised that they employ concrete measures to prevent the spread of Covid-19 from food handling to delivery, as well as to ensure the safety of delivery staff and restaurant staff who still have to make contact amid this outbreak,” Prayote added.

 

Source: https://www.nationthailand.com/news/30385476

 

-- © Copyright The Nation Thailand 2020-04-06

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[kevin612]

Foodpanda saves more money, always compare the prices before the order.

[Curt1591]

Another industry to skim.

[bearpolar]

1 hour ago, kevin612 said:

Foodpanda saves more money, always compare the prices before the order.

grab delivery for restaurant 2km away: 20 to 90b

foodpanda: free

 

panda could be 10b more per item, still save a ton.

[trainman34014]

Shame they don't get the Supermarkets to submit a 'price structure' as they are clearly gouging in many area's !

[ChrisY1]

Price control for delivery food.....talk about control freaks in this place!

What ever happened to free enterprise?

[Almer]

3 hours ago, trainman34014 said:

Shame they don't get the Supermarkets to submit a 'price structure' as they are clearly gouging in many area's !

Ordered 2 pizza from grab 430 baht, order direct buy1 get 1 

[hotchilli]

5 hours ago, bearpolar said:

grab delivery for restaurant 2km away: 20 to 90b

foodpanda: free

 

panda could be 10b more per item, still save a ton.

Use food Panda and give the rider a good tip.

Grab are living up to their name... grabbing!!

[Jingthing]

1 hour ago, ChrisY1 said:

Price control for delivery food.....talk about control freaks in this place!

What ever happened to free enterprise?

Well yeah I see your point in normal times but these are not that and food delivery can now be seen as an essential service where people are under some level of curfew and at least strong encouragement to stay at home as much as possible. 

 

Personally I haven't really noticed any crisis price gouging in Pattaya and indeed there is more competition than ever and many restaurants are opting to handle the delivery options themselves. 

 

Perhaps they are being proactive in this? 

[cyril sneer]

the changes, if any, won't take effect until businesses have started to re-open

[Jingthing]

10 minutes ago, cyril sneer said:

the changes, if any, won't take effect until businesses have started to re-open

Huh? 

Many places are indeed open for takeout and delivery. 

[AhFarangJa]

Why was foodpanda not on the list.

[Nanaplaza666]

8 hours ago, bearpolar said:

grab delivery for restaurant 2km away: 20 to 90b

foodpanda: free

 

panda could be 10b more per item, still save a ton.

Foodpanda can deliver for free because they charge the restaurant that they deliver the food from 30% if you use their service . That's an outrageous nr and if as a restaurant owner you tell them to put 5 baht up on your items they decline . Let's say if you sell som tam for 50 baht and they take 30% that's 15 baht so means as a restaurant you only get 35 baht for that order , out of wich you have to pay your electricity , staff and products you use so i think they are a bunch of th..fs . Ok you can negotiate the percentage down to 20% maybe, but still they start you of at 30% . Outrageous .

[UKJASE]

38 minutes ago, Nanaplaza666 said:

Foodpanda can deliver for free because they charge the restaurant that they deliver the food from 30% if you use their service . That's an outrageous nr and if as a restaurant owner you tell them to put 5 baht up on your items they decline . Let's say if you sell som tam for 50 baht and they take 30% that's 15 baht so means as a restaurant you only get 35 baht for that order , out of wich you have to pay your electricity , staff and products you use so i think they are a bunch of th..fs . Ok you can negotiate the percentage down to 20% maybe, but still they start you of at 30% . Outrageous .

can you just give them your existing menu with the prices inflated 30%?

That way you get your 50 baht still for your somtam?  or are they wise to that you think?

 

(the reason i ask is my girlfriend has just opened a small food place, and is considering grab/food panda etc, but cannot affors to give them 30%)

[cocopops]

Government price fixing for anything other than the shortest periods of time always leads to shortages. There is no monopoly, the market will figure things out.

Edited April 6, 2020 by cocopops

[lkn]

10 hours ago, cocopops said:

There is no monopoly, the market will figure things out.

There is currently no monopoly, but at least some of the delivery companies are (and maybe all will) make money from the restaurants, yet it is the consumers who select “the winner”, but they have no incentive to pick a winner that doesn’t squeeze the restaurants, on the contrary, above someone posted that Food Panda is better than Grab, because Grab makes the actual cost of delivery visible to the customer.

 

A restaurant could of course select not to work with Food Panda, but we can look at how well that worked out for the hotel business, where most now give a 30% cut to Agoda (or Bookings.com, which is owned by the same parent organisation).

 

So in this case, I’m sceptical that “the market” will work it out. As we have seen in many similar cases, the winner either initially runs at a loss to gain market share and then starts to monetise the monopoly, and/or they buy up competitors.

 

Edit: And once they have the monopoly, it is extremely hard to compete. because incase of a delivery company, consumers will not order from your new company unless all the restaurants sign up with you, and restaurants won’t sign up, unless you give better terms than e.g. Food Panda, but if you give better terms, Food Panda can easily crush you with promotions and discounts that you just can’t match, because they get the product up to 30% cheaper than you, so no consumer will switch to your service.

 

Edited April 7, 2020 by lkn