Food delivery company foodpanda Singapore is applying a platform fee of S $ 0.29 for all orders from this Sunday, November 21.
The company said the fees would be used to develop and upgrade features on its platform, such as increasing resources for app merchants and regular platform maintenance.
Competitor GrabFood Singapore also charges a platform fee of $ 0.30 on all delivery orders.
Deliveroo Singapore does not charge a platform fee, but there is a similar “service fee” of S $ 0.30 on all orders that go into its 24-hour customer service and app enhancements. .
GrabFood and Deliveroo apply variable small order fees for food orders below the minimum amount.
For foodpanda, users are subject to minimum order values for some merchants and may have to top up the difference for orders that do not meet the minimum order value.
Growing Food Delivery Market
Food delivery businesses have grown aggressively in Singapore and the region, in order to compete for a bigger slice of the pie.
The e-Conomy SEA 2021 report from Google, Temasek and Bain & Company showed that the food delivery industry grew 33% year over year to reach US $ 12 billion in gross merchandise value ( GMV) in the region.
In Singapore, Grab and foodpanda have neck-and-neck market shares, with Grab holding 42% of the pie and foodpanda 34%, according to a study by Momentum Works and Statista.
Featured Image Credit: Nikkei
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