Restaurants are boycotting Foodpanda over increased commission

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The All Pakistan Restaurant Association had announced a three day foodpanda boycott as the company constantly demanded a hike in commission. The boycott started on 15th September and effected different food delivery services for customers.

APRA chief Muhammad Naeem Siddiqui, wrote a complaint letter to foodpanda’s CEO stating that the members were constantly being asked for raise in commission which was not an easy task to be done. None of the members of the association could afford giving away 25-30% of commission. So if the problems were not addressed, ARPA would have to boycott with foodpanda permanently.

Most importantly it will be difficult to increase commissions for those restaurants who have just entered the market on a small scale.

He said: “[Foodpanda] managers blackmail APRA members to increase the commission manyfold, for instance from 18% to 25%, threatening and shutting their brands on the portal. This is the most unethical way of coercing a member into accepting Foodpanda’s terms and conditions. It needs to be stopped immediately.”

A few days ago Espresso Pakistan posted a picture on their social media announcing their boycott with Foodpanda and asked their customers to place their orders directly.

The image had a caption with it: “Until Foodpanda figures out how to work with restaurants fairly, Espresso will be removing itself from their service. We’d be really grateful if you were to order directly from us, either via our website”

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