All Pakistan Restaurant Association (APRA) has temporarily suspended its services with Foodpanda over repeated complaints made by restaurants across the country.
In a letter directed to CEO Foodpanda, Numan Sikander Mirza, APRA has stated that Foodpanda was initially started as a third-party vendor delivery service. However, Foodpanda has been coercing restaurants to shut down their own delivery services in a bid to expand its operations.
It has not only caused delivery personnel to become unemployed but has disconnected many restaurants from their customers.
APRA has called on Foodpanda to allow vendor delivery services of all restaurants to be operational regardless of their size.
Furthermore, APRA has noted that Foodpanda has been pressurizing restaurants to increase its commission from 18% to 35%. In case of non-compliance, Foodpanda threatens to take down the restaurant’s profile from its portal.
APRA has demanded Foodpanda to immediately forsake unethical methods of siphoning money off restaurants.
Moreover, APRA has claimed that Foodpanda has been asking restaurants to work with it exclusively, an anti-competitive business practice that APRA has warned to challenge in the Competition Commission of Pakistan (CCP).
APRA has announced to immediately suspend its services with Foodpanda in Karachi for the time being.
However, APRA has warned to permanently terminate its services with Foodpanda across Pakistan in case the issues mentioned above remain unresolved.