Connect with us

Economy

DIT chews on regulations to lower food delivery service fees

Neill Fronde

Published 

 on 

PHOTO: Food delivery services offer Covid-19 discounts to vendors after DIT pushes. (via Flickr - Dennis Sylvester Hurd)

After pressure from the Department of Internal Trade, food delivery services in Thailand will lower their rates to aid struggling food vendors during Covid-19. Restaurants have been complaining about the high commissions that food delivery services like Food Panda, Gojek, Grab, and Line Man charge restaurants, typically taking a 30% bite out of profits. The DIT has requested that food delivery services lower their slice of the pie to 15%.

When Covid-19 first swept the world, many countries including Thailand went into lockdown. Restaurants were closed, dining in was forbidden. Often restaurants were kept afloat by the increased online ordering from people staying home to avoid Covid-19, and for many restaurants, food delivery services became their bread and butter. But as the pandemic months stretch on and the economy and tourism are still flat as a pancake, restaurants are in a pickle struggling to survive when so many of their orders are via costly delivery services.

It is rumoured that the DIT is pushing for a regulating law that sets a cap on the commission these food delivery services can charge, but last month they called a meeting with the companies to butter them up into voluntarily lowering their rates. A California law that limits online food delivery commissions to a maximum of 15% during Covid-19 was served up as food for thought.

Gojek has agreed to discount rates, but at a rate that might be small potatoes compared to the DIT’s 15% request. They are allowing food vendors to either receive a 5% discount on fees or pass it along as a saving to their customers to sweeten the deal and boost sales. The special runs for the whole month of June and Gojeck are offering 15-20% discounts on orders for vendors who register before May 30.

Line Man food delivery service has offered the same 5% discount, but only for food vendors in Bangkok, Nontha Buri, Pathum Thani, and Samut Prakan who sign up by June 1. Grab Thailand, whose food delivery services have become a gravy train while rideshares are down due to the pandemic, also announced plans to work with the DIT to make a similar discount program in June for local merchants paying over 25% commission.

While none of the food delivery vendors matched the DIT’s 15% discount request, the small crumbs of 5% discounts can still help small food vendors bring home the bacon, at least until official regulations are drafted and implemented.

SOURCE: Bangkok Times

 

Want more Thailand news from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📝️ Join the conversation on Thaiger Talk - discuss news & life in our Thailand forums
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Neill is a journalist from the United States with 10 years broadcasting experience and national news and magazine publications. He graduated with a degree in journalism and communications from the University of California and has been living in Thailand since 2014.

Follow Thaiger by email:

Coronavirus (Covid-19)22 seconds ago

PM Prayut announces Thailand will fully reopen within 120 days

Transport3 hours ago

Thai Airways rehabilitation plan accepted by Bankruptcy Court

Thailand3 hours ago

Thailand News Today | PM apologises, vaccine delays, Pattaya sandbox? and sharks | June 16

Phuket Sandbox July 1st

days
hours
minutes
seconds

Thaiger is getting behind local businesses for the restart of tourism in July - up to 50% discounts across all advertising packages in June!

Sponsored by image

Coronavirus (Covid-19)3 hours ago

Restaurants request easing of Covid-19 rules and financial aid

Thailand4 hours ago

Isaan farmer and son electrocuted and killed by wire fence in rice field

Thailand5 hours ago

Another data breach: Info leaked on Bangkok Immigration website

Crime5 hours ago

Krabi men arrested after TikTok video of a shark shot and killed goes viral

Thailand6 hours ago

Thailand’s FDA doesn’t approve Russia’s Sputnik V vaccine, cites missing data

Best of6 hours ago

Top 8 Things to do in Krabi

Thailand6 hours ago

Thai government apologises for data leak, blames “temporary glitch”

Coronavirus (Covid-19)8 hours ago

6 school closed after infections are found

Coronavirus (Covid-19)8 hours ago

Wednesday Covid Update: 2,331 new cases; provincial totals

Best of9 hours ago

Top 5 Meditation Centres and Retreats in Thailand

Phuket9 hours ago

Thai police chief donates 100,000 baht to Phuket man shot by a drunk officer

Coronavirus (Covid-19)9 hours ago

Covid-19, food delivery brings rise in plastic and infectious waste

Thailand3 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism4 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket4 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism4 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand4 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism4 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand5 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand5 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand5 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand5 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand5 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand5 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand5 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand5 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand5 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending