The news has spread about APRA's boycott of Foodpanda services, which began from the 15th of September. The CEO and Chairman for APRA, Muhammad Naeem Siddiqui, made the Association's intent clear, sharing how the coronavirus pandemic had already disrupted businesses and this would continue to be the case with Foodpanda's current 'unfair practices'.
“(Foodpanda) managers blackmail APRA members to increase the commission many-fold, for instance from 18% to 25%, threatening and shutting their brands on the portal,” he said. “This is the most unethical way of coercing a member into accepting Foodpanda’s terms and conditions. It needs to be stopped immediately.”
Siddiqui also highlighted on how a cap on Foodpanda's spiking commission was detrimental, as it affects not only established businesses, but hinders the ability for new startups and businesses to grow. The commission has risen from its previous 18% to 25-35% allegedly, which has resulted in businesses and restaurants such as Espresso and Kaybees publicly supporting the boycott under APRA's terms.
Celebrity Chef Saadat Siddiqui has also backed APRA's terms and conditions, supporting the boycott, stating the importance of both stakeholders and customers supporting vendors and the food businesses, as Foodpanda has also been reportedly asking restaurants to discontinue services with other competitors as well as close their own vendor delivery.
APRA's Chairman, Mr. Naeem Siddiqui also penned a letter to the CEO of Foodpanda, listing and addressing the grievances of their members and restaurants, “Vendor delivery is the original concept of Foodpanda and its own 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,” said the letter.
The suspension restaurants have issued for Foodpanda services will become permanent if grievances are not addressed or looked into, and if the required changes are not made. We await Foodpanda's response as the matter has gone viral on social media with restaurants and APRA's official page sharing their take on the boycott.
Will Foodpanda change its 'unfair' policies or what will the future hold for the food delivery giant in Pakistan? Let us know what you think in the comments!