Thailand
Thailand: Panel mulls online food delivery fee revamp
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.
The working panel is chaired by Mr Wattanasak, with other members including representatives from consumer protection agencies, drivers, food vendors, restaurants and platform operators.
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.
Source: https://www.bangkokpost.com/business/2127895/panel-mulls-online-food-delivery-fee-revamp