Restaurants in Karachi boycott Foodpanda

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Karachi, 23rd September: Restaurants in Karachi have boycotted the food delivery company ‘Foodpanda’.

According to reports from Baaghi TV, Karachi restaurants have boycotted Foodpanda over exploitative practises and demand in commission hike.

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The All Pakistan Restaurant Association warned that if no resolution is achieved, they will close the service permanently nationwide.

Dawn reported that the boycott, which includes nearly 200 eateries had started from the 15th of September. It was in response to demands made by the delivery service to increase online sales commission from 18 per cent to 35 per cent.

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CEO of the company, Muhammad Naeem Siddiqui wrote a letter to the chairman APRA and apprised their member’s concerns, pointing out that foodpanda repeatedly pressed for an increase in commission and non-implementation of the agreement.

It goes on to state that if unfair practices will not stop then APRA will stop working with foodpanda on a permanent basis.

According to Dawn News, the statement read, “We have received widespread complaints from our members, regarding your team’s coercive attitude and unfair business practices, which has raised serious concerns about your organisation.”

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It continued, “We have received widespread complaints from our members, regarding your team’s coercive attitude and unfair business practices, which has raised serious concerns about your organization.”

Image Credit: Dawn Images

According to APRA, it is impossible to pay 25-35 per cent of commissions for aggregation services. They say that it is very difficult for the start-up businesses as costs get drastically higher and there is a need to ensure that there is a cap on the commission that foodpanda may charge.

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Chairman APRA further said that the restaurant industry was badly hit due to the coronavirus pandemic, and now is the time that they need maximum support from their stakeholders.

Image Credit: Dawn Images

 

President APRA has warned that if no solution is reached in Karachi then they will be forced to shut down their services permanently from the Foodpanda portal.

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APRA members have also complained that foodpanda asks them to work with restaurants exclusively which fall under anti-competitive business conduct and can be challenged in Competition Commission of Pakistan.

It seems Foodpanda is trying to create a monopoly and create a giant which would haunt the market with its weight and size if not curtailed on the right time.

Stay connected to Baaghi TV for more updates in this regard!

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