Give us a break, businesses tell food delivery platforms

Many traders have backed Datuk Seri Alexander Nanta Linggi, the federal Domestic Trader and Consumer Affairs (KPDNHEP) Minister, in his decision to examine the charge rate for two major food delivery companies (p-hailing), Foodpanda Malaysia Sdn Bhd and Grab Malaysia.

Mami Cendol Shop

Umierah Ariffin, 32, the manager of Mami Cendol, said the review was necessary because many traders were struggling to make ends meet.

“The 30 per cent rate imposed on us is excessive as this does not include the additional per cent Sales and Service Tax (SST) and other additional charges. We are not making a lot of profit by using their service.”

The biggest issue that needed to be fixed, according to Umierah, was concealed charges, with many traders being unclear about the penalties and unsure why they were imposed.

“The additional charges really frustrate me sometimes. As a trader, we all have our own sales target, and when we think we have achieved them, the fees disrupt our sales.”

She expressed her expectation for a lower service charge, and she believed that both traders and merchants needed each other to survive.

Badruddin Kadree

Meanwhile, Badruddin Kadree, the 38-year-old co-founder of Bon, claimed that the charge rates were unnecessarily high, and that they would have to boost their retail pricing to cover expenditures.

“Our profit will decrease if we do not increase our prices in the system. The only reason we have to mark up the prices is to pay for our overhead costs. We pity the clients as the prices are too expensive but this is not profitable for us either.”

Badruddin stated that as a result of this, he had taken the initiative to develop his own app—still in the testing phase—that he hoped would provide customers with good value for money.

“I created an app that I hope will aid local traders in the future. I am aware of our difficulties, which is why I am working on an app that will make a major difference.”

He hoped that the commission could be reduced even further to help businesses survive during the pandemic while also attracting more clients to use their platform.

Abdul Qayyum Al Said

Abdul Qayyum Al Said, 22, owner of Syarifah’s Restaurant, on the other hand, wished for better negotiations for a win-win situation.

“We still need them for marketing despite their hefty rates because the app has been there for a while and they can provide us with more customers.”

Abdul Qayyum also hoped that p-hailing companies (Foodpanda and Grab) would improve their systems because he had personally experienced multiple deductions, and he believed that many others had as well.

“Hopefully, they will consider improving their system as well, since many people have had problems with money being deducted but the details are not showing up in the system.”

Syarifah’s Restaurant