FoodPanda vs Karachi restaurants: What is happening?

Recently, the All Pakistan Restaurant Association (APRA) announced that Karachi restaurants would no longer do business with FoodPanda because of its “unfair practices”.

While speaking to a media outlet, a small restaurant owner, registered on FoodPanda, complained:

My restaurant is suffering due to delivery problems. Third-party delivery does not keep riders involved or connected to the business. Smaller owners suffer greater than larger chains because the latter can still afford this cut in margins.

Another FoodPanda registered restaurant said:

The restaurant industry is already hit hard by the Covid-19 lockdown, 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 the high-ups, which has led us to announce the suspension of services with FoodPanda.

On Monday, the Chairman of APRA, Muhammad Naeem Siddiqui, wrote a letter to the food delivery service’s CEO. The letter stated the members’ rising grievances and concerns because FoodPanda was “repeatedly pressing for an increase in commission and making some important demands”.

The letter contained a warning, which said:

If FoodPanda does not stop unfair practices, APRA will consider ending business with the company permanently, starting from the 15th of September.

Explaining the reason for discontinuing service with FoodPanda, the letter further explained:

Vendor delivery is the original concept of Foodpanda, and its delivery was launched as an optional service. Forcing restaurants to close their vendor delivery – which will only increase unemployment but will also disconnect the food outlets with customers – is not acceptable at all. Vendor delivery should remain operational regardless of the size of the brand.

Maintaining his stance and justifying his decision, Chairman APRA said:

A majority of members are being pressurized to increase commissions, but it is impossible to pay 25-35pc commissions for aggregation services. It is incredibly difficult for new entrants, as their startup costs rise drastically. We need to ensure that there is a cap on the commission that FoodPanda may charge.

Muhammad Naeem Siddiqui further shared:

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 threat is the most unethical way of extorting pressure on any member to accept the terms & conditions. It needs to be stopped immediately.

Expressing his concern further, the APRA President said:

Our members have also complained that FoodPanda asks them to work with restaurants exclusively, which falls under anti-competitive business conduct and can be challenged in the Competition Commission of Pakistan.

Concluding the letter with a warning, Siddiqui stated:

All APRA members will be closing their tablets from the 15th of September onwards, initially in Karachi. If no resolution is achieved, we will be left with no option but to permanently close the FoodPanda services nationwide.

Following the letter, various restaurants took to their social media and announced the boycott of FoodPanda. Many spread awareness about how their valuable customers can order directly from them now.

It should be noted that CareemEats, EatMubarak, EatOye, and Cheetay are fierce contenders in the home delivery industry. Only time will tell whether FoodPanda succumbs to the competition amid its recent loss or manages to restore its confidence amongst eateries.

What are your thoughts on this? Please share with us in the comment section below.

  • I’m a home chef with food panda. They charge us 30% commission, and 1.6% bank fee if the order is online payment. There’s a SALES TAX also which food panda recovers from us (not mentioned anywhere).
    I told them, I’m a home chef, not some restaurant, I’m not registered tax payer…. Why would you deduct tax from my earnings……?? But it said, no no tax is paid by us. Which is lie, if you see any invoice, you will definitely get to know, they charge….
    1. 30% commission (which is extremely high)
    2. 1.6% bank charges if order is online payment.
    3. Rs. 400 monthly as its service charges.
    4. Hidden tax amount on my income from food panda.
    Let’s suppose, if a chicken qorma costs me Rs. 215 per plate. I’m forced to sell it in Rs. 375 in order to get at least my labor and food cost. And even on this low earnings, we home chefs work hard and honestly for food panda…..!! Getting so less in return.

  • foodpanda is charging home vendors 30 % comission plus onboard charges 400 rs monthly and tax if payment is online plus other hidden charges which is unethical and unfair it is exploiting homechefs’ what will that poor vendor earn as cost of the dishes are hardly manageable please apra should raise their voice against foodpanda for home vendors also as there is no such platform where we can get justice

  • This is why the competition is so important in the market
    samething is happening with ubar and careem. Since they are one now, customer service is horrendous and prices have sky rocketed.

  • Dear APRA

    Thank GoD u wakeup i was always thought k app satooo pee ka so rahy ho jab foodpanda 20% say uper ghya tha tab jaghna thaa apko kher mazeed tabahi say bachnay k liya sab uthaa ka bahir marin inki devices mehnat kar kar k din ba din commission 35% tak laay aay or portal pa sastaa bechnay ka trend b customer ko de diyaa sastaa b bechooo or commission b do tu bachy gaa kay staff rent material

    Commission should be 20% enough

  • Hi
    I m foodpanda rider
    Ye sirf restaurant ko Tang nahi Kar rahy balky riders ko bhi bhut Tang karty Hain
    Hum ne aysa din bhi dekha hai lockdown main k sirf eik din ka eik order or eik din main 22000 tak ki sales magar ab 3000 sale ho Jaye to suspend means her 3 order baad inko payment lagao phir ka’am Karo nahi to Ghar jao
    Cancil order ab rider police ko do or rider police order hazam Kar jati hai jis se bhut see riders 2 din k liye suspend huway
    Or jab order aata hai 5 minut arrival time dety Hain chahy Maro magar 5 minut main vender k pass hon nahi to 30 minut ki break

    • ملتان میں بھی ایسا ہی کچھ ہے، بس جرمانے اور سزا، بندہ پوچھے کہ کر نہیں رہا تو رائیڈر کی مرضی کمپنی کو کیا مسئلہ ہے، اگر وہ آڈرد پک نہیں کر رہا تو رائیڈر کا نقصان ہے نا کمپنی کا تو نہیں کیوں کہ وہ آڈرد اگر میں نہیں پک کرتا تو کسی اور کے پاس چلا جائے گا

  • I am home chef from Islamabad, foodpanada now taking its share @ 35%, where as most of the home chef are still sharing 30%, no one is ready to listen from foodpanda, one of my payment is missing from foodpanda no resolution is done since July 2020.

    Currently focusing on direct orders via my own riders.
    Alhamdolillah giving them, Petrol, Per delivery and Food, feeling blessed.

  • This bastard panda is a ripp off.. Dismantle and ban them permanently in pakistan, let the other local companies serve. The slogan of Panda’s scumbag CEO is ‘get rich or die trying’, and he should simply eat shit n die lol hahaha. Kudos to APRA for a bold step and hopefully Greedy Panda is banned for good IA!

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