Shared kitchen operator Smart City Kitchens has filed a complaint against Deliveroo and GrabFood to the Competition and Consumer Commission of Singapore (CCCS) after it claimed platforms “go against the spirit of fair play and healthy competition”, according to ST. This is because Deliveroo and GrabFood have allegedly refused to list food businesses operating out of its kitchen on their platforms.
The CCCS confirmed to Marketing that it is looking into the matter and welcome feedback on it. In a statement to Marketing, a Deliveroo spokesperson said the company is in discussions with Smart City Kitchens and it is evaluating what is in the “best interests” for its restaurant partners and customers. It added: “In the meantime, Deliveroo continues to support these restaurant partners with their existing operations on our platform.”
According to the Deliveroo, it had a meeting with Smart City Kitchens in June, and the most recent exchange between the top executives from the two companies was in early July. Marketing understands that Deliveroo has not made any decision nor informed any restaurant partner that they cannot work with Smart City Kitchens as the firm is currently still in discussions with Smart City Kitchens.
Meanwhile, Grab said to ST that it is still finding the process of finding the “most efficient way” to adopt the cloud kitchen concept onto its platform. Marketing has reached out to Grab and Smart City Kitchens for their comments.
According to the report, Deliveroo operates three shared kitchens of its own and GrabFood had expressed plans to venture into the space earlier in the year. Foodpanda, on the other hand, is a partner of Smart City Kitchens and owns two shared kitchens. Smart City Kitchens, which opened last month to rent its facility to food businesses, appealed to CCCS to “help level the playing field”. The decision by Deliveroo and GrabFood is said to have affected at least seven tenants that have begun their operations and prompted concerns to over 20 others that are commencing in the coming weeks. The incident is reportedly hurting Smart City Kitchens’ expansion plans.
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