Commerce Min persuades food delivery platforms to cut consumer costs

**misskit** · 29-05-2021, 06:17 PM

BANGKOK (NNT) - The Ministry of Commerce has combined efforts with restaurants and five delivery platforms to reduce daily living costs for the public by cutting the GP rates charged to eateries to 25 percent.

Deputy Prime Minister and Minister of Commerce Jurin Laksanawisit, met with the food delivery platforms and representatives of the restaurant industry including the Restaurant Entrepreneurship Association and Thai Restaurant Association as well as six financial institutions, to agree on two activities to support COVID-19 hit restaurants. The first is the Lot 11 project aimed at helping both restaurants and domestic users of food delivery services.

The platforms agreed to reduce their Gross Profit (GP) charge on restaurants from the usual 25-35 percent to 25 percent throughout the month of June in Bangkok, while food prices will be cut elsewhere in the country. Participating platforms include Robinhood, Food Panda, Grab, Gojek and Lineman. The activity will see menu items discounted by up to 60 percent.
The ministry is also to facilitate matching between eateries and loan providing banks this June 7-20. The move will see soft loans without the need for collateral, made available to restaurants.

Over 110,000 outlets registered with the Department of Business Development are eligible for the loans. Of the total, 15,000 are juristic entities while over 100,000 are individual owners. While the two schemes will result in a loss of 250-350 million baht for food delivery platforms, the discount activity is expected to stimulate the economy by no less than 2 billion baht.

National News Bureau Of Thailand

**Farang Ky Ay** · 29-05-2021, 08:51 PM

From what I've seen, restaurants who registered with a delivery app (eg. Grab food), already add the delivery fee to their prices on their online menu.

If the fee goes down, it doesn't necessarily reflect on the price paid by customers unless the restaurant make the prices changes on their menu.

**harrybarracuda** · 29-05-2021, 09:02 PM

Originally Posted by Farang Ky Ay

From what I've seen, restaurants who registered with a delivery app (eg. Grab food), already add the delivery fee to their prices on their online menu.

If the fee goes down, it doesn't necessarily reflect on the price paid by customers unless the restaurant make the prices changes on their menu.

I believe it's the percentage charged as opposed to just the delivery charge.

In Chiang Mai there is an app called Tuk (which also has the advantage of being primarily in English when you want it so). They are only charging 15% to restaurants, and a lot of foreigners use them in preference to Grab. I found them extremely efficient.

**nidhogg** · 29-05-2021, 09:13 PM

We tried last week to order through grab from a place that was a fair distance away. No takers on the delivery, so we gave up after several tries.

This time (tonight) we tried once more on grab. No dice. Called the place and they asked where we were, and then to put the order through on their line account, which we did. Food order through grab was 1350, plus a 150 delivery charge. Through line it was 1150, INCLUDING delivery.

**Farang Ky Ay** · 29-05-2021, 09:33 PM

^^ I've looked at the restaurant side of grab food app, when a restaurant set up its menu, there is only one price field per meal, the final price. Then grab take its 37% share (30% delivery fee + 7% VAT) from the final price.

If they lower the fee, it doesn't affect the price paid by the customer, it increases de facto the restaurants profit unless Grab decide to lower every meals prices, which isn't impossible but requires some work to do and then some more work to cancel after that one month.

I don't use food delivery apps but I know some restaurants owner using it and I helped them set up their grab account and menus.

**harrybarracuda** · 30-05-2021, 11:44 AM

Originally Posted by Farang Ky Ay

If they lower the fee, it doesn't affect the price paid by the customer, it increases de facto the restaurants profit unless Grab decide to lower every meals prices

It's up to the restaurant if they want to take the savings offered by a reduced fee or pass them onto the customer in the form of reduced prices.

They have to look at what's left after food costs and overheads.

**Farang Ky Ay** · 30-05-2021, 12:43 PM

^ I don't blame them, I commented about this to explain how lowering the fee doesn't automatically mean a lower price for customers.

**harrybarracuda** · 30-05-2021, 04:10 PM

Originally Posted by Farang Ky Ay

^ I don't blame them, I commented about this to explain how lowering the fee doesn't automatically mean a lower price for customers.

So when you said: "If they lower the fee, it doesn't affect the price paid by the customer"

You actually meant "If they lower the fee, it doesn't automatically affect the price paid by the customer".

And by the way, Grab don't set meal prices, the restaurant does. Grab simply, er, grabs a share.

According to them they only make a fraction of what they charge.

EXAMPLE
(numbers used may vary based on factors shared, using the higher end of commission at 30%)

Total order: $18
Delivery fee: $3.40 (assuming 2.5-3km delivery distance; delivery fee is customarily based on distance, supply-demand and may vary)
Platform fee: $0.20

Total paid by a consumer: $21.60

Where does the money go?

To the restaurant: $12.60 (70% of order)
To the delivery partner: Approximately $8.00 (delivery fee $3.40 and Grab’s top up of delivery fee + incentive to ensure they earn enough $4.60)
To Grab: $1.00 (30% commission $5.40 – partner incentive $4.60 + platform fee $0.20)

**Farang Ky Ay** · 31-05-2021, 01:46 PM

^ I meant what I said in my first post

If the fee goes down, it doesn't necessarily reflect on the price paid by customers unless the restaurant make the prices changes on their menu.

Grab could also do it by loading new prices to reflect the lower fee, then put the old prices back on when the reduced fee period is finished.

For your BTW, as I've already stated, the restaurants set up the meals prices, then grab take VAT (7%) and delivery fee (30% currently) from that price (not added to the meal prices).

**harrybarracuda** · 31-05-2021, 03:13 PM

Originally Posted by Farang Ky Ay

^ I meant what I said in my first post

So how can I tell which of your conflicting statements is the one to which I should respond?

Can you mark them in a different colour or something?

**Farang Ky Ay** · 31-05-2021, 03:28 PM

By reading them, understanding what they said without trying to twist them into a different meaning, nick picking and making straw man argument.

Should he easy enough for anybody, but with you I've some doubts

**harrybarracuda** · 31-05-2021, 04:00 PM

Originally Posted by Farang Ky Ay

By reading them, understanding what they said without trying to twist them into a different meaning, nick picking and making straw man argument.

Should he easy enough for anybody, but with you I've some doubts

Where did I twist the meaning in this then?

"If they lower the fee, it doesn't affect the price paid by the customer"

**Farang Ky Ay** · 31-05-2021, 04:51 PM

You're very thick today, my first comment seemed pretty clear for me

If the fee goes down, it doesn't necessarily reflect on the price paid by customers unless the restaurant make the prices changes on their menu.

So as I said from the start, lowering the fee doesn't lower per se the price for customers, to lower the price another action is required from the restaurants or as stated in a further comment Grab could load the lower prices and restore the old price when the lower fee period is over.

I felt I was quite clear, I guess not to everybody apparently, as this conversation hasn't spanned months and several pages you could just try not to ignore my posts to try (and IMHO fail) to make a point as I don't intent to list/summarise my previous points when I post a comment, it would make a dull reading fully repeating myself constantly.

**harrybarracuda** · 31-05-2021, 06:00 PM

Can you explain what this is so I don't accidentally twist its meaning?

Originally Posted by Farang Ky Ay

nick picking

**Farang Ky Ay** · 31-05-2021, 06:11 PM

Nitpicking, autocorrect tricked me, couldn't you figure it out by yourself?.. don't make yourself dumber than you are.

BTW English is not my first language, so yes I definitely make mistakes on occasions. Not a big deal as most people would have figured this one out, some may be puzzled, especially nitpickers.

I feel you need a "win" on this one, even if it relies on form rather than substance, it's still a big win for you I guess. Thus I grant you the dumb-and-dumber-nitpicking-strawman-point award of the day. Congratulations!

I let you maybe make a victory lap on this, as deserved, and maybe call it a day on this thread as I have nothing else to add to this "conversation".

**harrybarracuda** · 31-05-2021, 10:00 PM

Commerce Min persuades food delivery platforms to cut consumer costs-big-fish-banner-jpg

Originally Posted by Farang Ky Ay

I have nothing else to add to this "conversation".

I'm not entirely sure you had anything useful to add to it in the first place.

**Farang Ky Ay** · 31-05-2021, 10:15 PM

You're right, appart from what I said in my first comment, no I didn't have anything to say, I just answered your bickering, straw man point and nitpicking posts.

You demonstrated what a moron you are, congratulations again.

**harrybarracuda** · 01-06-2021, 12:25 AM

Let's face it, you descended into talking shite when you said "...Grab decide to lower every meals prices..."

Again: Grab do not determine food prices.

**Farang Ky Ay** · 01-06-2021, 11:20 AM

???

You just had a brain fart or Alzheimer is kicking in.

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