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.

Also, smaller, local food delivery platforms—that charge 10-20% commission per order—are taking on some of the load. Local platform RunningMan, which focuses on low- and middle-market restaurants, has seen a 500% surge in merchants requesting to sign up for its service since the MCO announcement, says co-founder and CEO Andrew Chee.

AUTHOR

Ka Kay Lum

Based in Kuala Lumpur, Ka Kay covers investment activities, aka following the money, across Southeast Asia and in-depth stories on the often-overlooked Malaysian startup ecosystem. She was previously a regional writer for Nikkei-owned DealStreetAsia.

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