foodpanda and Grab MY asked to submit proposal in 14 days to KPDNHEP

Foodpanda Malaysia and Grab Malaysia have been asked to submit a proposal to the Domestic Trade and Consumer Affairs Ministry (KPDNHEP). According to media reports, Minister Datuk Seri Alexander Nanta Linggi said this move was implemented to improve the services offered to consumers.

The companies have 14 days to comment on “a clear and orderly communication plan from the company to traders, consumers and riders; a clear application system that does not confuse traders and consumers as well as a policy on delivery charges, commissions and payment of wages” he said in a statement.

The requests came after a joint engagement session with both the companies to understand the business operations, cost structures along with commission rates.

Meanwhile, last week the Malaysia Competition Commission (MyCC) said that it was closely looking at food delivery platform companies as the public has raised concerns over the imposing of “exorbitant commission fees” and the price of food items. According to reports on The Star and The Edge, MyCC is assessing the situation as to whether the conduct of certain food delivery platform companies “is in contravention of the Competition Act 2010 or not".

A report on Malay Mail also quoted Malaysia Retail Chain Association president Shirley Tay saying that the high prices have seen many food and beverage outlets less keen on utilising the services of food delivery apps.

She was quoted on the article saying, “We are hoping that more food delivery players will emerge on the market, and equalise the playing field. For the time being, I do not think we have any choice but to work with existing platforms like Grab and Foodpanda. All the same, we ask for some degree of consideration and goodwill from the food delivery platforms, to consider reducing their commission prices. “

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