Food delivery has become a lifeline to restaurateurs since Malaysia disallowed dine-in on 16 March—as a part of a government Movement Control Order (MCO). Except, it’s an expensive lifeline. Major food delivery platforms such as foodpanda and GrabFood are charging high commission rates—25-35%—for their service, causing a backlash among Malaysia’s food and beverage (F&B) businesses….
Faustian deal? Malaysian restaurants’ power struggle with delivery giants
With dine-in dead under lockdown, Malaysian F&B operators need GrabFood and foodpanda. But the food delivery platforms also charge a third of the restaurant revenue as their commissioning fee. Not an easy bargain
F&B businesses were allowed to be open for takeaways and delivery orders as Malaysia went into a partial lockdown on 16 March
Demand for food delivery platforms has surged, but restaurateurs are struggling to accept the high fees charged by the operators
Smaller and newer rivals have emerged to capitalise on the situation by offering much lower fees
Businesses are now being forced to innovate and adapt their business models to a changing order