The All Pakistan Restaurant Association (APRA) has temporarily suspended its services with foodpanda for three days over demands to increase online sales commission from 18 per cent to 35 per cent.
In a statement issued, the association said restaurant owners boycotted foodpanda over unfair practices.
APRA highlighted that the restaurant industry operates at a profit of 10 to 12 per cent only and foodpanda is being paid an 18 per cent delivery commission.
“Despite this, foodpanda is increasing the pressure on restaurants to increase their commissions and have threatened if the delivery commission of 25 per cent to 30 per cent would not be done otherwise they will stop the delivery of food,” the statement reads.
“Food delivery companies do not comply with any agreement made with restaurants and they force the restaurants to fire their food riders so that only food companies’ riders can give the food delivery “. APRA said.
In addition, food delivery companies take customer’s data also and then transfer the order to their favorite restaurants, which has put restaurants into a challenging position.
APRA urged the authorities to issue directives for formulating policy for food delivery companies under which they can be bound by rules and regulations otherwise it will be extremely difficult to work for the restaurant industry, which is already facing financial difficulties due to COVID-19 pandemic.