Foodpanda, Deliveroo to give Hong Kong eateries more flexibility to switch to rivals, option to sell dishes for less independently
- Competition Commission accepts terms offered by Foodpanda and Deliveroo, months after watchdog warned delivery giants’ contracts could breach regulations
- ‘[Customers] will reap the benefits of increased competition between platforms, which include more choices, potentially better services and lower menu prices,’ watchdog says
Foodpanda and Deliveroo will give Hong Kong restaurants more flexibility to switch over to rival delivery platforms and the option to sell dishes independently for less, as part of both companies’ commitments to the city’s antitrust watchdog.
Restaurants that signed exclusive contracts with the two platforms could also work with smaller food delivery companies effective immediately, but Foodpanda and Deliveroo could block the eateries from working with emerging rival KeeTa, since it had a market share of more than 10 per cent, the Competition Commission said.
The watchdog also gave the two industry giants 90 days from Friday to introduce the updated provisions to increase competition.
The commission in June warned that Foodpanda and Deliveroo’s contracts could constitute a breach of anti-monopoly regulations, with the companies proposing remedial terms that were later discussed at public consultations.
Watchdog CEO Rasul Butt on Friday described the changes as a significant step in levelling the industry playing field.