APRA All Pakistan Restaurant Association suspends business with the famous good delivery business FoodPanda due to unfair business practices in Karachi.
The CEO of APA wrote to the CEO of FoodPanda stating that FoodPanda repeatedly presses for increased commissions
APRA showeds its concerns and made it clear that if foodpanda does not revise their unfair demands, the APRA will discontinue working with FoodPanda. The original idea of FoodPanda was vendor delivery but ever since FoodPanda introduced its own delivery service, it has forced restaurants to discontinue their own vendor delivery. Many restaurants have also suffered at the hands of FoodPanda delivery service because any inconvenience caused by FoodPanda makes the business suffer.
It also disconnects the business from its customers. Small business owners have also come forward with complaints against Foodpanda that they can not afford the standard cuts in margins as large businesses can.
Recently foodpanda also increased the commission percentage from 18% to 25% and threatened that restaurants that do not abide will be removed from their portal. Due to covid-19 the restaurant industry has already suffered great losses and are struggling to survive. It is a purely unethical move by FoodPanda. Similarly, FoodPanda does not allow the restaurants on their portal to do business with any of its competitors. This is an attempt to monopolize an industry and a concern also reported to the Competition Commission of Pakistan.
Ever since the suspension has been announced, many restaurants have taken the issue to Social Media to raise awareness.
