Apps for the delivery of groceries have recently come under fire because they require high commission rates of 30 to 40 percent and affect the already low profit margins of street vendors.
Following the recent initiative by foodpanda to waive commission fees for new retailers in the first month, FairPrice and the start-up for the delivery of food WhyQ have teamed up to launch a platform that does not charge a commission.
The online initiative Marketplace @ WhyQ was launched today (May 29) and is located on the WhyQ app platform.
Around 100 F&B operators, including Hawker centers and food courts from the FairPrice Group, have registered for the platform.
The FairPrice Group is helping bring interested suppliers from FairPrice Group's Hawker centers, food courts and coffee shops, including Foodfare and Kopitiam, on board, said a FairPrice spokesman.
The platform is open to all F&B operators – from food courts, coffee shops, street vendors to restaurants, the spokesman added.
Unlike most delivery platforms, Marketplace @ WhyQ does not charge its F&B dealers any commission or entry fees.
Instead, the platform will include a 6 percent surcharge on food prices, "for technology and customer support costs" that customers will have to pay. The shipping costs are also borne entirely by the customer and calculated according to distance.
Restaurants that have signed up for inclusion in Marketplace @ WhyQ can either tap third-party WhyQ delivery services or opt for self-delivery.
With this new initiative, F&B dealers can increase their already low margins.
Selected image source: WhyQ / Foodfare