KARACHI: Restaurant owners in Pakistan’s seaside megapolis of Karachi are boycotting Foodpanda in a protest over what they say are “unethical practices” by the mobile food delivery service which seeks to increase its commission fees.
The All Pakistan Restaurant Association (APRA) announced their protests on Tuesday, accusing the company owned by Berlin-based Delivery Hero SE of increasing commission to “nonviable” levels. From Monday, the protest is going to expand to Islamabad and Lahore.
“Our 250 members have protested over the unfair practices by Foodpanda and boycotted its services from Sept. 15, in the first phase in Karachi. The three-day deadline is ending today. Now our tablets will be closed on Foodpanda in Lahore and Islamabad from Monday,” Ather Chawla, convener of APRA, told Arab News on Thursday.
“They (Foodpanda) are asking for increasing the commission fee from the current 18 percent to 25-35 percent, which is not viable for the business of restaurants whose raw material cost alone is 50 percent,” he said, adding that APRA’s cooperation with Foodpanda has been suspended until the company puts in place “corrective measures.”
Having operations in 50 countries, Foodpanda offers services in 32 Pakistani cities. In Karachi alone, it has some 262 restaurants registered on its platform. A major chunk of the company’s revenue comes from restaurant commissions.
In a letter addressed to the chief executive of Foodpanda, APRA chairman Muhammad Naeem Siddiqui wrote that the company’s managers “blackmail APRA members to increase the commission manifold,” threatening them that their restaurants would be removed from the delivery service’s platform.
Restaurant owners also say Foodpanda is deviating from its original Vendor Delivery concept.
“The original model was that they only book orders through their portal and we would deliver food. Later they also came up with delivery options and now they are forcing us to abandon our own delivery services,” Chawla said, adding that it would reduce the area of delivery from 10 kilometers to four kilometers.
APRA has also written a complaint to the Competition Commission of Pakistan (CCOP), accusing Foodpanda of “anti-competitive business conduct by forcing restaurants to sign exclusive contract with them, limiting them to work with other food delivery companies.”
“First they forced restaurant owners to hike commission and when they refused, they were pressurized to sign exclusivity agreements,” Chawla said.
As in Pakistan many other companies such as CareemEats, Eat Mubarak, and Cheetay offer food delivery services, Chawla sees Foodpanda’s policy as “a bid to monopolize food delivery business.”
Despite repeated attempts by Arab News, Foodpanda chief executive for Pakistan, Nauman Sikandar Mirza, was not available for comment.
Karachi restaurants boycott Foodpanda delivery service over commission policy
https://arab.news/cugxn
Karachi restaurants boycott Foodpanda delivery service over commission policy
- All Pakistan Restaurant Association (APRA) protest in Karachi will expand to Islamabad and Lahore on Monday
- Restaurant owners also accuse the Berlin-based company of attempt to ‘monopolize food delivery business’ in Pakistan
Pakistan expresses solidarity with Australia as gunmen kill at least 12 in Bondi Beach shooting
- Gunmen targeted people gathered at Sydney’s famous Bondi Beach to celebrate Jewish Hannukah festival
- Pakistan, itself a victim of “terrorism,” condemns violence against innocent civilians, says President Zardari
ISLAMABAD: Pakistan’s President Asif Ali Zardari expressed solidarity with Australia on Sunday as gunmen killed at least 12 people and wounded a dozen others in the Bondi Beach shooting that targeted the Jewish community in the country.
New South Wales (NSW) police said two people had been taken into custody, and the Australian Broadcasting Corp. said one of at least two gunmen was among those killed. Around a dozen people were taken to local hospitals after the shooting, an NSW ambulance spokesperson said.
The attackers targeted a large group gathered at the northern end of Sydney’s Bondi Beach, near or at Bondi Park playground, as per news reports, when the attack happened. Gunmen attacked people who were there to celebrate an event related to the Jewish festival of Hannukah.
“President Asif Ali Zardari has expressed sorrow over the tragic shooting in Sydney, conveyed condolences to the victims’ families & wished the injured a speedy recovery,” the president of Pakistan’s official account on X wrote.
“Pakistan itself a victim of terrorism, stands in solidarity with & condemns violence against innocent civilians.”
Prime Minister Shehbaz Sharif also condemned the Sydney attack, expressing condolences with victims of the incident.
“Pakistan condemns terrorism in all its forms and manifestations,” he wrote on X.
As per international media reports, one of the gunmen has been identified as Naveed Akram from Bonnyrigg in Sydney’s southwest. His country of origin remains unclear.
One of the world’s most famous beaches, Bondi is typically crowded with locals and tourists, especially on warm weekend evenings.
Videos circulating on X appeared to show people on the beach and nearby park scattering as multiple gunshots and police sirens could be heard. One video showed a man dressed in a black shirt firing a large weapon before being tackled by a man in a white T-shirt who wrestled his weapon off him. A different man was seen firing a weapon from a pedestrian bridge.
Another video showed two men pressed onto the ground by uniformed police on a small pedestrian bridge. Officers could be seen trying to resuscitate one of the men. Reuters could not immediately verify the footage.
The attack came almost exactly 11 years after a lone gunman took 18 people hostage at the Lindt Cafe in Sydney. Two hostages and the gunman were killed after a 16-hour standoff.
