Singapore restaurants rail against 30% delivery app fees

Platforms like Grab and Foodpanda take big share of revenue during dining ban

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GrabFood and similar delivery platforms have provided a lifeline for Singapore's restaurants amid coronavirus restrictions, but at a steep cost. © Reuters

TAKASHI NAKANO, Nikkei staff writer

SINGAPORE -- With Singapore's restaurants relying more than ever on delivery platforms due to coronavirus-related restrictions, concerns are growing that the astronomical fees charged by these apps could drive many eateries out of business instead of saving them.

"You call yourselves our 'partners,' but we truly wonder if you know what that means,"  a coalition of over 600 restaurants has said in an open letter. Delivery platforms usually charge around 30% in commission for each order, which can wipe out profits for restaurants already operating on razor-thin margins.

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