Thailand’s Lawmakers to Regulate Online Food Delivery Services

3 min read

Lawmakers in Thailand have approved measures to regulate online food delivery services after customer complaints during the covid-19 lockdown. Food delivery surged in Thailand due to the lockdown.

The Trade Competition Commission warned that if food delivery platforms increased prices unfairly they could be fined. “The Covid-19 outbreak has changed consumer behavior and more consumers are using these online services and there were complaints so control

prices is necessary,” deputy government spokeswoman Ratchada Dhnadirek told reporters. “There were complaints from consumers of online services about the price of food delivery,” she told the Bangkok Post. The Office of Trade and Competition Commission secretary-general Somsak Kiatchailak said there had been complaints that food delivery platforms had increased their service fees.

The fees for restaurants also increased from 20% to rates of up to 40%. He did not name any food delivery companies. The price control comes into force on July 4 and will be reviewed again in one year. Furthermore the control list aims to prevent operators from setting unfair prices and other conditions. Ms Ratchada said, for example, that services like those provided by Grab and Kerry would be included on the price control list.

While online, app-based Thai food deliveries may be relatively new to Thailand, the motorcycle drivers carrying insulated boxes filled with orders and branded with their company logos have become ubiquitous in the country’s urban areas. Alexander Felde, managing director of Foodpanda Thailand, says the current market in Thailand is large and with greater potential for growth. A Google Temasek study estimated the size of Thailand’s online Thai food delivery market to be as high as $300 million in 2018. With an averaging out to 120,000-140,000 Thai food deliveries a day.

Mr Felde says the market could grow enough to accommodate 3 million deliveries a day in the next five years. Foodpanda was one of the first players in online Thai food delivery in Thailand. Also the first mobile app offering the service. Founded in Singapore, it moved to Thailand in 2012. Laying much of the groundwork for the online Thai food delivery infrastructure. Furthermore by getting restaurants on board with the new technologies and logistics.

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