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PM forbids food delivery firms from ramping up prices

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Picture: Thansettakij

 

PM's office spokeswoman Rachada Thanadirek said that prime minister Prayuth Chan-ocha cares passionately about the people and has not been idle in putting into place measures for their benefit.

 

In comments laced with government rhetoric reported by Thai business media Thansettakij, the spokesman said that the Ministry of Commerce and related agencies were ensuring that sharp practices and profiteering during the pandemic were not allowed by businesses. 

 

All this was important so that Prayuth could take care of his "phee nong" - brothers and sisters. 

 

One of the main upshots of the policy was that delivery companies have been forbidden from raising their prices to take food to homes. 

 

Thaivisa notes that one of the strategies of delivery companies is to start with a low price point and decent wages for staff.

 

Then with shareholders in mind, moves are made to cut staff rates and increase delivery charges.

 

The Thai government - for all the rhetoric - is clearly determined to thwart this strategy and ensure that the people's hardship is not increased especially during the tough days of the pandemic. 

 

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-- © Copyright Thai Visa News 2021-05-04
 
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  • worgeordie
    worgeordie

    I thought that was the standard way of doing business here. regards worgeordie

  • timendres
    timendres

    This is one reason I refuse to use Foodpanda. There is NO SUCH THING as "free delivery". FP is gouging the restauranteur and leaving them making virtually zero profit. I wish the law stated that food

  • mark131v
    mark131v

    <deleted> me!!!   A grown up actually said that, did their nose start to extend?   Thailand truly is a parallel universe where blatant lies are treated as the truth and the a

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8 minutes ago, webfact said:

ensuring that sharp practices and profiteering during the pandemic were not allowed by businesses

I thought that was the standard way of doing business here.

regards worgeordie

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Are farang like me also his pee nong (brothers and sisters)? And I usually see app delivery charges of 9- 10 baht...ridiculously cheap so I always give the driver 20-50 extra depending on distance.

Edited by Pattaya Spotter

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Is there anything he doesn't forbid other than outrageous Corruption at Government and every other level right down to Lottery Tickets ?

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Not enough. They charge my wife and I 37% (Panda and Grab). While I try to keep costs at or below 30%, we are barely making it, on top of a massive slowdown of orders from us and around our area since January. Thais and expats are hurting.

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5 minutes ago, worgeordie said:

I thought that was the standard way of doing business here.

regards worgeordie

Correct...just not during a pandemic; otherwise perfectly acceptable. 

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Just now, Somtamnication said:

Not enough. They charge my wife and I 37% (Panda and Grab). While I try to keep costs at or below 30%, we are barely making it, on top of a massive slowdown of orders from us and around our area since January. Thais and expats are hurting.

 

This is one reason I refuse to use Foodpanda. There is NO SUCH THING as "free delivery". FP is gouging the restauranteur and leaving them making virtually zero profit. I wish the law stated that food delivery must charge the delivery fee ON TOP of the order so it is visible and clear.

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22 minutes ago, webfact said:

PM's office spokeswoman Rachada Thanadirek said that prime minister Prayuth Chan-ocha cares passionately about the people and has not been idle in putting into place measures for their benefit.

 

<deleted> me!!!

 

A grown up actually said that, did their nose start to extend?

 

Thailand truly is a parallel universe where blatant lies are treated as the truth and the actual truth treated as lies... 

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1 hour ago, Pattaya Spotter said:

Are farang like me also his pee nong (brothers and sisters)? And I usually see app delivery charges of 9- 10 baht...ridiculously cheap so I always give the driver 20-50 extra depending on distance.

The major food delivery services charge the restaurant 30% and, at least initially, pay the driver 60 baht per delivery. So if you order 1000 baht of food, the restaurant sees 700 baht, the delivery company 240 baht, and the driver 60 baht.

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2 hours ago, Pattaya Spotter said:

Are farang like me also his pee nong (brothers and sisters)? And I usually see app delivery charges of 9- 10 baht...ridiculously cheap so I always give the driver 20-50 extra depending on distance.

 

No PS....if you ask Anutin, we are "Pee Ons"...

 

Fortunately we benefit from this particular price controls...

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2 hours ago, worgeordie said:

I thought that was the standard way of doing business here.

regards worgeordie

https://www.bbc.com/news/uk-northern-ireland-52450246

not the only country...

1 hour ago, Walker88 said:

The major food delivery services charge the restaurant 30% and, at least initially, pay the driver 60 baht per delivery. So if you order 1000 baht of food, the restaurant sees 700 baht, the delivery company 240 baht, and the driver 60 baht.

I've always wondered how the take was divided...very interesting. So I guess I don't need to tip the driver extra...and when I eat in, I should ask for a 30% discount.

 

That's a pretty good sized piece of cheese for the driver...4 or 5 deliveries a day and they've done okay...anything more is gravy. I guess that's why there seems to be no shortage of drivers (and they don't have to join a moto-mafia taxi que to get work).

Edited by Pattaya Spotter

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48 minutes ago, DLock said:

 

No PS....if you ask Anutin, we are "Pee Ons"...

 

Fortunately we benefit from this particular price controls...

Some people in Pattaya pay extra for that.

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3 hours ago, Pattaya Spotter said:

Are farang like me also his pee nong (brothers and sisters)? And I usually see app delivery charges of 9- 10 baht...ridiculously cheap so I always give the driver 20-50 extra depending on distance.

The  problem is that the delivery companies are charging up to 30% commission to the restaurant - that helps cover the delivery charge.  The 9-10 Baht is just BS. Even with the fair delivery charge in place, the companies are still fleecing the restaurants. 

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10 minutes ago, Pattaya Spotter said:

I've always wondered how the take was divided...very interesting. So I guess I don't need to tip the driver extra...and when I eat in, I should ask for a 30% discount.

 

That's a pretty good sized piece of cheese for the driver...4 or 5 deliveries a day and they've done okay...anything more is gravy. I guess that's why there seems to be no shortage of drivers (and they don't have to join a moto-mafia taxi que to get work).

For some restaurants, the delivery services are loss leaders.....introduce customers to the venue or make sure inventory doesn't go bad and get wasted. Asking for a 30% discount when dining-in is like saying "you don't ever need to actually make a profit".

 

Drivers for the Big Two services make about 30,000 baht per month....provided they survive the traffic.

So he's putting his foot down.

 

 

"Forbid" is certainly an interesting look for a prime minister.

 

Normally he "orders" people to do something, or not do something. Forbid, sounds slightly more imperial.

 

 

1 minute ago, Walker88 said:

For some restaurants, the delivery services are loss leaders.....introduce customers to the venue or make sure inventory doesn't go bad and get wasted. Asking for a 30% discount when dining-in is like saying "you don't ever need to actually make a profit".

 

Drivers for the Big Two services make about 30,000 baht per month....provided they survive the traffic.

I would never do that...I want all my fav restos to survive and thrive so they can keep feeding me ☺ And again, that's a great salary for a job that requires little education and only capital expense is a used moto and a helmet.

All this was important so that Prayuth could take care of his "phee nong" - brothers and sisters.

 

literally and not forgetting his daughters to????

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2 hours ago, Pattaya Spotter said:

I would never do that...I want all my fav restos to survive and thrive so they can keep feeding me ☺ And again, that's a great salary for a job that requires little education and only capital expense is a used moto and a helmet.

Great salary is relative. Top drivers do 15-20 deliveries a day, but they're always bobbing and weaving out of traffic, one instant away from buying the farm.

 

The big delivery companies have a kind of collusion re pricing. There is a market for another firm that will do the same job for a 'mere' 20%. It would require lots of initial marketing expense, but every restaurant on the other services' sheet would sign up with a service asking only 20%. I'm forced to think there is some sort of 'barrier' to entry, because at 30%, the margins are rich, even excessive. 'Something' is preventing fair competition.

No one is forcing anyone to use the delivery services. If you are unhappy you have other options;

-Go collect the order yourself.

- Hire someone else like a moto taxi driver (if one is willing to do it)

- Ask the shop why it does not have its own delivery service if the  service fee cost is so unfair.  

 

What some of you think is a fair fee is not. Consider the cost of establishing a call center, providing the website and support sourcing the drivers, building the distribution system and the general cost of running the delivery service. 

What I see is a lot  of people expecting that they should have a subsidized delivery service. 

If the shops can do better they have their  own delivery service like McDonald or KFC.

 

3 hours ago, Pattaya Spotter said:

Some people in Pattaya pay extra for that.

 

 

41 minutes ago, Patong2021 said:

No one is forcing anyone to use the delivery services. If you are unhappy you have other options;

-Go collect the order yourself.

- Hire someone else like a moto taxi driver (if one is willing to do it)

- Ask the shop why it does not have its own delivery service if the  service fee cost is so unfair.  

 

What some of you think is a fair fee is not. Consider the cost of establishing a call center, providing the website and support sourcing the drivers, building the distribution system and the general cost of running the delivery service. 

What I see is a lot  of people expecting that they should have a subsidized delivery service. 

If the shops can do better they have their  own delivery service like McDonald or KFC.

 

It's marketing, and first to market creates a kind of barrier to entry and allows a tacit monopoly or oligopoly. Equivalent are Amazon and Facebook.

 

There's not much involved other than coding. Margins are huge for Foodpanda and Grab. Individual shops don't have the visibility that being an established delivery player brings, so setting up an in-house delivery service is limited. Macs and KFC could do that, but non franchise venues cannot.

 

Some venues double their prices on Foodpanda and Grab to cover what those places charge. The consumer picks that up.

 

The market is still young, however. New entrants will cut into the 30% and drive it down so that restaurants can survive. Grab is now facing Bolt and others in transport; they will soon face competition in food delivery, and their golden days of gouging restaurants will end.

9 hours ago, webfact said:

the Ministry of Commerce and related agencies were ensuring that sharp practices and profiteering during the pandemic were not allowed by businesses. 

Well, sharp practices and profiteering are only allowed at the tippity-tippity top where monopolies take root, grow, and thrive in the rarefied air breathed not by the common-folk and plebeians.

Food delivery jobs are the fastest growing in LOS? No wonder it's in the toilet. 

17 hours ago, worgeordie said:

I thought that was the standard way of doing business here.

regards worgeordie

...isn't greed a wonderful thing..they thrive on it...too bad for 'pee nongs' ..and all the other 'nongs'...rip em off too!

Edited by tandor

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17 hours ago, webfact said:

PM's office spokeswoman Rachada Thanadirek said that prime minister Prayuth Chan-ocha cares passionately about the people and has not been idle in putting into place measures for their benefit.

BS

He has personally chosen to allow the people of Thailand to suffer sickness and financial hardship while we all sit idly by waiting for inoculations to start.... he deliberately failed to secure vaccines in 2020 in favour of waiting for a certain Thai producer to come on stream.

Deliberately stood in the way of private enterprises from procuring vaccines.

While we're waiting for that to happen thousands are becoming sick and many are dying, and thousands are going bankrupt.

He cares passionately my ar*e.

 

17 hours ago, webfact said:

All this was important so that Prayuth could take care of his "phee nong" - brothers and sisters. 

I almost vomited.

17 hours ago, Pattaya Spotter said:

Are farang like me also his pee nong (brothers and sisters)? And I usually see app delivery charges of 9- 10 baht...ridiculously cheap so I always give the driver 20-50 extra depending on distance.

 

I really wouldn't be so concerned about their income. Place i work offered voluntary redundancies and 2 guys who work with food panda part time in the evenings jumped at the chance. Both were getting around 25k salary at work. 

 

18 hours ago, webfact said:

PM's office spokeswoman Rachada Thanadirek said that prime minister Prayuth Chan-ocha cares passionately about the people and has not been idle in putting into place measures for their benefit.

Yeh OK then if you say so. The only person he cares **Passionately* about is himself IMO

Yet another meaningless statement like all the others claiming to forbid this, stamp out that, end so and so.

Nothing positive ever comes from that mouth.

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