If you’ve been on the Internet for the last few days, you’d have come across these stories:
- People blatantly breaking the Circuit Breaker rules and getting called out on social media
- Cat videos
- People doing stupid things like running around naked because the Circuit Breaker rules have made them gone bonkers
- Cat videos
- People humblebragging about how they’re working hard at home via Zoom when we know they spend a bulk of their time sleeping
- Cat videos
- Complaints and petitions about how food delivery platforms have hefty commissions that cause eateries to be unprofitable
- Cat videos
While the number of cat videos has increased significantly because we can no longer leave our house to play with the community cats in our void deck, the calls to reduce food delivery platform commissions have become louder in recent days.
Especially after an F&B owner’s Facebook post went viral.
There’s even an online petition that urges the companies to lower the commission.
And now, one of the food delivery platforms have responded.
GrabFood ‘Strikes Back’ at Criticism of Them Earning Hefty Commissions from Eateries
One of the food delivery companies has responded.
If you’re confused over what’s going on now, here’s an example: if you buy two packs of chicken rice that cost $10, the hawker is just getting back about $7, as $3 goes to the food delivery platform as a commission.
The main beef is the $3, which is about 30% of an order: does food delivery platform need to take such a large cut?
A Facebook user has created an infographic to address this issue.
And GrabFood’s response seems to be a nod to that post, given that they could’ve just issued a wordy statement instead.
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Here’s their response:
Lest you can’t see, here’s what they’ve written:
Are the commissions paid to delivery services fair? Get a closer look at who gets a share of the pie, and decide for yourself.
*Calculated based on an Order Value of $25, and Delivery Fee of $3.
To put it simply, the commissions are used for these:
- Delivery rider fleet management
- Launching new merchant support measures
- Advertising campaigns for merchants
- Grab-funded promotions
- GrabRewards programme
- Payment processing fees
- Product development & platform improvement
- Tech and customer support
- Delivery rider insurance
And the final conclusion if you’re an F&B outlet owner?
Don’t bet on even a single % reduction of the commission.
Now, if you feel bad for the hawkers and intend to have instant noodles for the rest of the Circuit Breaker period, don’t. Watch this video and you’d understand:
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