Coronavirus pandemic

Coronavirus: Funding scheme to help hawkers with food delivery extended

There are hawkers who remain hesitant about subscribing to food delivery platforms. ST PHOTO: ARIFFIN JAMAR

A scheme disbursing $500 each to hawkers who sign up to food delivery platforms will be extended to the end of next month.

The fund was originally for hawkers who engage the platforms or third-party logistics firms to deliver food between April 7 and May 31.

It is for cooked food stallholders operating at hawker centres managed by the National Environment Agency (NEA) or NEA-appointed operators.

Senior Minister of State for the Environment and Water Resources Amy Khor announced the extension in Parliament yesterday, adding that NEA has so far received 600 applications for the fund.

She said: "We will encourage more hawkers to make use of this funding to set up an additional revenue stream, especially during this challenging period."

Dr Khor said that since the start of the circuit breaker period, about 20 per cent to 30 per cent of cooked food stallholders have chosen not to operate their stalls.

These include stalls located in the Central Business District, where crowds have thinned and business has dropped significantly, as well as those manned by older stallholders.

Dr Khor noted that there are hawkers who remain hesitant about subscribing to food delivery platforms.

The high commissions charged by more popular platforms could be prohibitive and some hawkers are also resistant to adopting new technology solutions, she said.

To support hawkers in adopting food delivery services, Enterprise Singapore launched a Food Delivery Booster Package last month. The scheme provides funding for 5 percentage points of the commissions charged by the major delivery platforms and 20 per cent off delivery costs if eateries engage third-party logistics players.

Dr Khor said the Government is also engaging food delivery companies to see how their business models can be adapted to the hawker centre context to potentially lower costs for the hawkers.

Current commission charges by food delivery platforms range from about 25 per cent to 32 per cent for each order.

To further encourage hawkers to take up delivery services, an information package listing the various food delivery platforms and third-party logistics partners will also be provided.

It will also include information on ground-up initiatives such as Facebook group Hawkers United and website sgdabao.com that have helped hawkers to advertise their food for delivery or pickup.

Dr Khor said: "Above all, of course, I would like to encourage all Singaporeans to support our hawkers by patronising them."

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A version of this article appeared in the print edition of The Straits Times on May 06, 2020, with the headline Funding scheme to help hawkers with food delivery extended. Subscribe