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Online delivery added to list of controlled services


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Online delivery added to list of controlled services

By THE NATION

 

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The Cabinet has designated online deliveries as a controlled service, after a rise in their use during the Covid-19 crisis.

 

Online deliveries were among 50 products and services on the updated “controlled” list, drawn up in line with a Commerce Ministry proposal, said deputy government spokesperson Ratchada Thanadirek on Tuesday (June 30). The Cabinet approved the addition of one new product and an update for two existing products on the list, she added.

 

She explained that cars had been removed from the list, but trucks and motorcycles remain controlled products.

 

Moreover, the listing of online delivery services was updated to cover related services such as Grab, Kerry, and Food Panda.

 

Ratchada said the update was proposed after delivery services became increasingly popular during the Covid-19 lockdown. A proposal to control delivery services via the Consumer Protection Board had also been made.

 

The new product added to the “controlled” list was distillers’ dry grains with solubles (DDGS).

 

Ratchada said that imports of DDGS are increasing, since it can be used as an ingredient in animal feed.

 

“In short, it can be used in place of maize or other products produced inside the country. Importation of DDGS would impact the domestic maize market if the product was not controlled,” she explained.

 

The Cabinet also approved the removal of two more items from the controlled list – fabric softener and store rental services.

 

Source: https://www.nationthailand.com/news/30390560

 

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-- © Copyright The Nation Thailand 2020-07-01
 
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Thailand to regulate online and food delivery services

 

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FILE PHOTO: A food delivery man waits for his customer while carrying a plastic bag full of plastic bags with take-away lunch during the coronavirus disease (COVID-19) outbreak in Bangkok, Thailand, May 11, 2020. REUTERS/Athit Perawongmetha

 

BANGKOK (Reuters) - Thailand's cabinet on Tuesday approved measures to regulate food and online delivery services after customer complaints during the country's coronavirus lockdown, a senior government official said.

 

Food deliveries surged during the lockdown and in April Thailand's Trade Competition Commission warned that if food delivery platforms increased prices unfairly they could be fined.

 

"The COVID-19 outbreak has changed consumer behavior and more consumers are using these online services and there were complaints so control (of) prices is necessary," deputy government spokeswoman Ratchada Dhnadirek told reporters.

 

"There were complaints from consumers of online services about the price of food delivery," she said.

 

In April, the Office of Trade and Competition Commission secretary-general Somsak Kiatchailak said there had been complaints that food delivery platforms had increased their service fees for restaurants from 20% to rates of up to 40%. He did not name any companies.

 

The price control comes into force on July 4 and will be reviewed again in one year. The control list aims to prevent operators from setting unfair prices and other conditions.

 

Ratchada said, for example, that services like those provided by Grab and Kerry would be included on the price control list.

 

The companies did not immediately respond to Reuters request for comment.

 

(Reporting by Panarat Thepgumpanat and Chayut Setboonsarng. Editing by Jane Merriman)

 

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-- © Copyright Reuters 2020-07-01
 
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I think there's room for some government regulations -- be that around issues of minimum service levels, rights to refunds etc in case of failures, etc.. On the pricing side, I tend to agree that so long as there is no monopoly or other cartel-style pricing climate, that the government really should stay out of the price-side of it.  While food delivery and overall delivery services (ie B2C) has massively expanded their reach, I'm not sure their impact reaches that of motor fuel, cooking fuel, cooking oil, rice and other items that have fairly strict pricing caps/controls on them.

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 Yes home delivery food services have become huge while charging large fees to the places that use them. Thet should be regulated... but by this government outfit? Sounds like someone figured out there is money to be made for why did they not see this 4 months ago when food panda started to clean up?  Now my question is why remove fabric softener from list?  5555

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3 hours ago, John1012 said:

I use online services quite frequently, and find that Kerry is highly efficient and not costly. This industry is driven by service levels and cost to consumer. If costs spiral or service level drops, they lose business. There are many alternatives, albeit not as good as Kerry, but acceptable.. why does the government need to become involved in a purely commercial enterprise? 

"why does the government need to become involved in a purely commercial enterprise?" It doesn't, at least not in a democratic country promoting freedom to trade, however Thailand is not really that is it. The only thing they should get involved in is if their is a monopoly and abuse of that power or a price fixing conspiracy between companies. If a company prices themselves to a level where people are complaining they are putting their own business at risk and will end up losing anyway and other, more competitive companies pick up the business, that's how business works, customers protest using their feet. This is a product of military rule in my opinion, it stinks more of communism than democracy. The country is slowly changing, you can draw your own conclusions on what that means for the future of Thailand.

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4 hours ago, John1012 said:

I use online services quite frequently, and find that Kerry is highly efficient and not costly. This industry is driven by service levels and cost to consumer. If costs spiral or service level drops, they lose business. There are many alternatives, albeit not as good as Kerry, but acceptable.. why does the government need to become involved in a purely commercial enterprise? 

Money, Money, Money !!!!!

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20 minutes ago, Surasak said:
5 hours ago, John1012 said:

I use online services quite frequently, and find that Kerry is highly efficient and not costly. This industry is driven by service levels and cost to consumer. If costs spiral or service level drops, they lose business. There are many alternatives, albeit not as good as Kerry, but acceptable.. why does the government need to become involved in a purely commercial enterprise? 

Money, Money, Money !!!!!

Talking of ABBA songs, I wonder which other one might be appropriate?

Gimme! Gimme! Gimme!    Crazy World    Disillusion    I Have a Dream    Merry-go-round    SOS    The Winner Takes It All

 

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Some companies who are delivering the food are charging the restaurants as much as 40% of the cost of the meal for delivering it. The restaurants are hardly making any money from takeouts which get delivered by these few well known greedy companies. 

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5 hours ago, John1012 said:

I use online services quite frequently, and find that Kerry is highly efficient and not costly. This industry is driven by service levels and cost to consumer. If costs spiral or service level drops, they lose business. There are many alternatives, albeit not as good as Kerry, but acceptable.. why does the government need to become involved in a purely commercial enterprise? 

Ah, the smell of cash....

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36 minutes ago, JusticeGB said:

Some companies who are delivering the food are charging the restaurants as much as 40% of the cost of the meal for delivering it. The restaurants are hardly making any money from takeouts which get delivered by these few well known greedy companies. 

Yet the delivery companies still make no profit. So they are not greedy at all. 

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4 hours ago, hotchilli said:

Exactly correct, with competition between delivery services the price & efficiency will dictate who gets what in the pecking order, customers will choose who they think best serves their needs.

The government should stay out of it and let a perfectly viable private business continue on it's own.

As soon as the government want to get involved with regulations the whole thing will become an overpriced fiasco.

Funny, cos in the UK when things went private e.g. trains, electricity etc. they prices have gone up, yet tax payers still subsidize them and they still get massive tax cuts. 

What would happen is left unregulated is one company, backed by capital will undercut the others, buy them up, until there is no competition. Then the prices will be jacked up

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6 hours ago, John1012 said:

I use online services quite frequently, and find that Kerry is highly efficient and not costly. This industry is driven by service levels and cost to consumer. If costs spiral or service level drops, they lose business. There are many alternatives, albeit not as good as Kerry, but acceptable.. why does the government need to become involved in a purely commercial enterprise? 

"why does the government need to become involved"   Why does a dog lick its dick ?

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5 hours ago, Emdog said:

May I hazard a guess and say "because they are control freaks and see a possible means to extort money"?

If your view is correct, which I doubt, it would suggest that the governments of most western countries including my own, Australia, which have consumer legislation dealing with the provision of goods and services are also control freaks and wish to extort money.
The alternative and which used to apply before the provision of such legislation was for the aggrieved consumer to attempt to seek redress through the commercial courts, a costly exercise usually out of reach of most people.

If you were one of such people I would imagine your post criticizing such lack of service would soon appear on this site.

 

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Thai customs certainly is doing their part in "controlling" online deliveries from abroad. A message from DHL to me:

 

'Please be informed that this shipment has arrived in Thailand and subjected to customs formal clearance which original passport is normally required for paperless registeration as an importer. '

 

Ain't that just great. Has been added in the last few months, was not required before. Thailand is closing in to becoming another military controlled hermit Myanmar.

 

Edited by DrTuner
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