

Food delivery commissions for merchants in Singapore should be lowered


Food delivery commissions for merchants in Singapore should be lowered
The Issue
Food delivery commissions are very high in Singapore. It ranges from 25-35%. Besides this amount, the food delivery platforms often come up with marketing packages to sell to merchants. Merchants are encouraged to pay extra amount so as to get added visibility and orders from customers (at the expense of other merchants who do not pay).
On top of that, they also charge similar rates for self pick-up orders. Customers have to pick up their own orders and there is no delivery expense. Why do the merchants have to pay these companies the same amount of commission if customers are already going to walk to the restaurant to self collect?! This is daylight robbery!
These costs are often passed down to customers. The profit margin for F&B businesses in Singapore is very low. In order to breakeven and make a small profit, merchants have to mark up their prices between 10-30%.
Eventually both the customers and merchants suffer from the higher cost of food delivery and higher cost of doing business.
This petition will be sent to the respective delivery platforms' CEOs and SFA/NEA once we hit 1000 signatures.
The Issue
Food delivery commissions are very high in Singapore. It ranges from 25-35%. Besides this amount, the food delivery platforms often come up with marketing packages to sell to merchants. Merchants are encouraged to pay extra amount so as to get added visibility and orders from customers (at the expense of other merchants who do not pay).
On top of that, they also charge similar rates for self pick-up orders. Customers have to pick up their own orders and there is no delivery expense. Why do the merchants have to pay these companies the same amount of commission if customers are already going to walk to the restaurant to self collect?! This is daylight robbery!
These costs are often passed down to customers. The profit margin for F&B businesses in Singapore is very low. In order to breakeven and make a small profit, merchants have to mark up their prices between 10-30%.
Eventually both the customers and merchants suffer from the higher cost of food delivery and higher cost of doing business.
This petition will be sent to the respective delivery platforms' CEOs and SFA/NEA once we hit 1000 signatures.
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Petition created on 24 May 2021