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Delivery apps in Singapore have refused F&Bs in cloud kitchens from advertising on their platforms. Can this anti-competitive practice be curtailed?

Basia Chow  |  SG
Published 2020-08-14 13:41:41
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There’s been a lot of buzz in the media about cloud kitchens lately.

Whether it’s Jollibee’s first cloud kitchen in Singapore or Tiffinlab’s 1000-unit global expansion, cloud kitchens are being touted as the next big thing in the evolution of the food delivery game.

Singaporeans are reported to spend upwards of S$500 million per year on online food orders, which is five to 10 times more than markets like Indonesia and Vietnam.

The growth spike in the soon-to-be US$200 billion (S$274 billion) food delivery industry is attracting both startups and conglomerates like flies. Even companies like Amazon have invested over US$575 million in Deliveroo.

However, the cloud kitchen industry may soon go toe-to-toe with food delivery apps. With a monopoly over local markets, cloud kitchens will find it difficult to survive without the access to the customer streams delivery apps own.

 
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