APRA announces Foodpanda 3 Day ban in Karachi a raise in commission. The boycott starting September 15 and ending 17 September, affected food delivery services for some restaurants.
APRA chief Muhammad Naeem Siddiqui write a letter of complaint to the CEO of the company that Foodpanda repeatedly pressed for increase in its commission. APRA will permanently stop working with Foodpanda if grievances of its members are not addressed.
“Foodpanda managers blackmail APRA members to increase the commission from 18 percent to 25 percent; otherwise, their brands would be shut from the portal. This is the most unethical way of extorting pressure on any member to accept Foodpanda’s terms & conditions and it needs to be stopped immediately,” Siddiqui said in the letter.
Despite industry runs on low margins a majority of All Pakistan Restaurant Association (APRA) members are being pressurized to increase commission. It’s impossible to pay 25-35% commission to Foodpanda, Said APRA chief. He said it is especially difficult for the new entrants, as their startup costs get drastically higher.
The APRA chief accused Foodpanda of killing its competition by forcefully stopping vendor delivery and restaurants from doing business with other delivery services.
Competition in the form of CareemEats, Eat Mubarak, EatOye and Cheetay exist.
Siddiqui said the restaurant industry was greatly hit by the Covid-19 pandemic and now is the time when it needs maximum support from stakeholders.
“We did raise similar concerns earlier but there has been no permanent solution from their high-ups,” he said. “It has led us to announce suspension of services by all our members.”
According to the APRA chief all APRA members will initially be closing their tablets in Karachi from September 15. If the issue is not resolved, they will be left with no option but to permanently close the services nationwide.