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Home Eats

Numerous Food Vendors Are Boycotting This Popular Food Delivery Service

by Rachel Chuah
October 21, 2021
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When the pandemic began, many people had to change their ways to survive. This includes food entrepreneurs who had to rely heavily on deliveries to reach their customers. In order to increase their reach, they bought ads on food delivery platforms. Regretfully, this backfired horribly.

A certain food delivery service has angered several food entrepreneurs. Not only did they allegedly overcharge for their advertising services, the businesses ended up being indebted to them as well.  Needless to say, these businesses are planning on taking action, and it isn’t going to be pretty.

Source: Eater

One food entrepreneur took to Facebook to explain the situation. Their post included screenshots from businesses stating they were losing money every month. They also included screenshots of their tax invoices as proof. The post stated the businesses were no longer using the platform’s services. “It’s nice to enjoy delicious food sent to you by (the service), but it won’t be delicious anymore knowing that the vendor who worked hard in preparing your meal don’t get paid for the food you enjoy,” it said. “Can you imagine that the vendors not only didn’t get their pay but owe money instead to (the service)?”

The post further clarified how the service had taken advantage of them. To begin with, the service would charge them with a high commission and include hidden fees. They would also fail to pay businesses on time. As the businesses usually aimed to pay off their fees, they were forced to increase prices without any adjustment period. Consequently, they would lose their regular customers.

From Roti Canai To Milo: foodpanda Reveals Malaysia’s Top Food & Grocery Trends

One entrepreneur in particular felt cheated. According to his tax invoice, he had actually made nearly RM9000 from sales alone. However, he did not receive a single cent. Additionally, the service’s commission for advertising and additional fees cost him roughly RM11,200. As a result, he gained nothing and ended up owing the service about RM2,300 in total.

Source: China Press

A majority of these food entrepreneurs have decided to take a stand against the service. They are planning to launch a nationwide demonstration and urge the public to boycott the platform. One business stated that they will be conducting protests in their respective areas, considering on the pandemic.

They will also be taking direct action against the delivery service. Some businesses will be terminating their cooperation with them. Others will opt to boycott the service during mealtimes and on the weekends. A few will still tote their business on the platform, but will offer discounts on another food delivery platform.

“We don’t have an official (starting) date,” the spokesmen explained. “But everyone hopes to continue (protesting) until the platform improves their payment system and solves other problems.” They also hope the platform will change their policies and be more transparent with their business partners, especially regarding rules for cancelling orders.

Source: Facebook

It’s terrible to know that while we benefit from their service, others have been suffering instead. Hopefully, the food delivery service will take note of their complaints and make their changes accordingly. If they want to retain their business partners, they’ll need to clean up their act.

From Roti Canai To Milo: foodpanda Reveals Malaysia’s Top Food & Grocery Trends

Sources: China Press, Facebook

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