Food delivery platforms such as GrabFood, Deliveroo, and Foodpanda have drawn flak from local netizens, particularly food and beverage (F&B) operators, over their high commission rates after the Singapore Government prohibited dine-in services on 4 April amid the COVID-19 outbreak.
For instance, F&B business owner took to Facebook on 15 April claiming the commission rates set by food delivery platforms are high and beseeched fellow operators to do a pickup or hire drivers instead.
Meanwhile, Singaporean writer Joshua Ip shared on Facebook on 17 April a list of platforms that can be useful for F&B operators as he encouraged them to hire riders directly and use platforms that do not charge an exorbitant 30% fee.
“So Grab apparently got snazzy corporate response from their snazzy corporate team. And yes, that’s where your money is going – not to restaurants, not to riders, but to admin overheads, like poor people staying up all night making graphics to justify their boss’ salary,” said Mr Joshua.
“Give your money to restaurants directly, hire riders directly, go to platforms that don’t charge an exorbitant 30% fee, or use your legs,” he added.
In the Facebook post, he also uploaded two photos of a slice of pizza which indicates the portion of the GrabFood’s commission rates.
He then went on to suggest various platforms, including Kopi-19 and Dabao Dash, where F&B operators and hawkers can market their stores on the sites. Both sites are completely not-for-profit and are manned in a personal capacity.
Other than the two sites, he also recommended #SupportLocalSG and Dabao Life, where hawkers and F&B operators can list their stores without sacrificing profit margins.
Mr Joshua also recommended the Singapore Restaurant Rescue and Hawkers United – Dabao 2020 Facebook groups, in which the groups enable Singaporeans to order directly from their favorite restaurants via the social media platform.
In addition, he introduced an application named Makanplaces.sg in which users need to install the app by scanning the QR code showed on the website. Other than enabling merchants to upload the details of their stores and food menu, the app also enables customers to order directly with the business owner via Whatsapp or call.
Furthermore, Mr Joshua suggested listing their food on #SupportLocal F&B – Carousell, in which the sellers need to provide clear details of how to order and address for pick-up or takeaways.
Lastly, he included a link to an Excel sheet titled “Circuit Breaker: #StayHomeSG Telegram Groups” where hawkers and F&B operators can find various Telegram groups to join, sorted by their area and locality.
ESG expanded support for F&B businesses leveraging third-party logistics partners for deliveries
Earlier on 4 April, Enterprise Singapore (ESG) rolled out a Food Delivery Booster Package to support F&B businesses to meet the needs of digitally-connected consumers amid the imposition of the “circuit breaker” measures in Singapore.
The package helps to reduce the business costs of selling on three key food delivery platforms–Deliveroo, foodpanda and GrabFood–by funding five percentage points of the commission cost charged by the above three delivery platforms from 7 April to 4 May 2020.
For instance, if the commission rate is 25 per cent of the total food delivery transaction value, the cost will be lowered to 20 per cent.
Meanwhile, F&B businesses who are not using the three major delivery platforms but are fulfilling food delivery orders through third-party logistics partners will be funded 20% for the delivery cost, ESG announced on 9 April.
“This will be valid for orders made between 7 April to 4 May 2020. Funding will be disbursed through eligible third-party logistics partners, such as Lalamove and Zeek,” ESG noted.
To be eligible for the delivery funding, ESG stated that F&B businesses must have a food shop or food stall license issued by the Singapore Food Agency (SFA), and sell food that is prepared on the premise for immediate consumption.