On Tuesday, All Pakistan Restaurant Association (APRA) in protest over the unfair practices has decided to boycott the food delivery service foodpanda in Karachi. The same practices if continues than the plan is to discontinue it in other parts of the country.
In the letter to the CEO of the company, Chairman APRA Muhammad Naeem Siddiqui reviewed their members’ complaints and concerns who pointed out the foodpanda repeatedly pressed for an increase in commission and non-implementation of the contract and made some important demands. It is very clearly stated in the letter that unfair practices must be stopped and if not done so, APRA will stop working with foodpanda on a permanent basis.
He stated, “Vendor Delivery was the original concept by Foodpanda and FP’s own delivery was launched as an optional service. Forcing restaurants to close their Vendor Delivery, which has not only increased unemployment but have “disconnected” them from customers and is not acceptable at all. We demand Vendor Delivery to be operational for all regardless of the size of the brand.”
He further explained the reason to boycott foodpanda in Karachi saying that the majority of our members are consistently being pressurized to increase commissions but it is not possible to pay 25 to 35 percent commission for accumulation services. He added that it is highly difficult for new entrants because their startup costs get severely higher.
Muhammad Naeem Siddiqui, Chairman APRA also said, “Managers blackmail APRA members to increase the commission many folds, for e.g. from 18 per cent to be increased to 25 per cent, threatening and shutting their brands from your portal. This is the most unethical way of extorting any member to accept foodpanda terms & conditions and it needs to be stopped immediately.”
He said that it has also complained that foodpanda asks their members to work with restaurants exclusively that basically falls under anti-competitive business conduct. He added that all restaurants have already suffered to a higher extent due to COVID-19 and now is the right time to have maximum support from their stakeholders.
He concluded that if no resolution is achieved, there would be left no option than to close the foodpanda’s services permanently nationwide.