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Panel mulls online food delivery fee revamp
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Business


PANEL MULLS ONLINE FOOD DELIVERY FEE REVAMP

Eateries, vendors decry commissions

published : 7 Jun 2021 at 04:55

newspaper section: Business

writer: Phusadee Arunmas

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Food delivery bikes line up in front of a mall in the Ratchaprasong-Siam
area. (Photo by Apichart Jinakul)

The government is setting up a working panel to study an appropriate structure
for the gross profit (GP) or commission fee applied to food vendors by online
food delivery platforms to prevent operators from profiteering.

Online food orders have surged during the pandemic.

Wattanasak Sur-iam, director-general of the Internal Trade Department, said
Commerce Minister Jurin Laksanawisit recently ordered the department to study
the GP structure after many small and medium-sized restaurants and food vendors
complained about exorbitant fees.

ADVERTISEMENT


The working panel is chaired by Mr Wattanasak, with other members including
representatives from consumer protection agencies, drivers, food vendors,
restaurants and platform operators.



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He said he plans to call a meeting of the panel as soon as possible.

Food delivery platforms charge an average commission from restaurant operators
of 30-35%, or 180-200 baht per order.

Some online platforms reported they are starting to share a portion of the
commission with drivers -- 10-40 baht per order -- with another portion of the
commission used as a subsidy for the price reduction campaign.

Nevertheless, small restaurants argue that the high GP rate makes it hard for
them to make a profit.

The working panel aims to determine appropriate guidelines that are fair for all
stakeholders, said Mr Wattanasak.

He said the Commerce Ministry has been trying to regulate the online food
delivery business and decided last year to place delivery charges for online
shopping and counter services on the ministry's price control list, requiring
special supervision under the Price of Goods and Services Act.

In a related development, Mr Wattanasak said the department is nearing readiness
for its proposal to the Central Committee on the Prices of Goods and Services,
which is reviewing the price control lists for 2021.

The price control list covers essential items for daily use such as food,
consumer products, farm-related products (fertilisers, pesticides, animal feed,
tractors, rice harvesters), construction materials, paper, petroleum and
medicines.

Listed foods and crops include garlic, rice paddy, milled rice, corn, eggs,
cassava, wheat flour, powdered/fresh milk, sugar, vegetable/animal oil and pork.

Earlier in the year the government decided to retain its price control on 55
products and service items including medical face masks, a synthetic fibre used
as a raw material to make medical face masks, alcohol and alcohol-based hand
sanitiser, and recyclable paper.

In a separate development, Somsak Kiatchailak, secretary-general of the Office
of Trade Competition Commission, revealed his office completed regulations
regarding unfair trade practices in negotiations between restaurant operators
and online food delivery platforms.

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