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Foodpanda users in S’pore to pay an additional S$0.29 for “platform fee” from Nov 21

foodpanda raise fees

Food delivery company foodpanda Singapore is implementing a platform fee of S$0.29 for all orders from this Sunday (Nov 21).

The firm said that the fee will be used to develop and upgrade features on its platform, such as increasing resources for the app’s merchants and regular platform maintenance.

Competitor GrabFood Singapore also charges a platform fee of S$0.30 on all delivery orders.

Deliveroo Singapore does not charge a platform fee, but there’s a similar “service fee” of S$0.30 on all orders which goes into its 24-hour customer service and app improvements.

Image Credit: CGTN

GrabFood and Deliveroo has a variable small order fee for food order values less than the minimum amount.

As for foodpanda, users are subject to minimum order values for some merchants, and may have to top up the difference for orders that don’t meet the minimum order value.

Fast-growing food delivery market

Food delivery companies have been aggressively expanding in Singapore and the region, to compete for a larger piece of the pie.

The e-Conomy SEA 2021 report by Google, Temasek, and Bain & Company showed the food delivery sector growing 33 per cent year-on-year to reach US$12 billion in gross merchandise value (GMV) in the region.

Image Credit: Vulcan Post

In Singapore, Grab and foodpanda are neck-to-neck in market share, with Grab at a 42 per cent share of the pie and foodpanda at 34 per cent, according to research from Momentum Works and Statista.


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