FairPrice Group and WhyQ launch food delivery platform with zero commission fees

Eateries here have had to rely on deliveries and takeaway orders due to circuit breaker restrictions. PHOTO: LIANHE ZAOBAO

SINGAPORE - Hawkers and smaller eateries looking to make use of the opportunities offered by going online, now have a more affordable option.

FairPrice Group and food delivery start-up WhyQ have launched a new food delivery platform which will enable food and beverage (F&B) operators to deliver their food islandwide while charging them zero commission.

The digital platform, called Marketplace   @   WhyQ, launched on Friday (May 29) and is a part of the current WhyQ app platform.

Unlike most delivery platforms, which charge F&B operators a commission of about 30 per cent, Marketplace  @  WhyQ will charge its operators no commission or start up fees. To offset payment gateway and server costs, the platform will include a 6 per cent markup on food prices to be borne by customers.

FairPrice Group chief executive officer Seah Kian Peng said many F&B businesses have been hard hit by the Covid-19 pandemic.

Eateries here have had to rely on deliveries and takeaway orders due to the circuit breaker restrictions, while coping with steep commission fees from established food delivery platforms.

Mr Seah said in a press release on Thursday (May 28): "FairPrice Group has been searching for a solution in the local landscape to address some of these concerns for the F&B operators. We are glad to announce this partnership with WhyQ, where FairPrice Group acts as an enabler for local food businesses who wish to ride the digital wave and adopt digital solutions to access new revenue streams."

About 100 F&B operators ranging from hawkers to restaurants have registered to be on the platform. These include hawker stall Beng Who Cooks, F&B chain Crave Nasi Lemak, South Korean eatery Dosirak, and restaurant Pang's Hakka Delicacies.

Eateries who have signed up to be listed on Marketplace   @   WhyQ can either tap on WhyQ's third-party delivery services or opt for self-delivery. Any delivery charges will be borne by the customer.

Mr Varun Saraf, co-founder of WhyQ, said the platform aims to encourage as many F&B players to operate delivery-enabled virtual stores.

He said: "Marketplace  @  WhyQ is a community platform that enables all food vendors to digitise their offerings with no commission fees, no onboarding charges and a transparent, distance-based delivery fee. It empowers vendors and gives them ownership over discounts and pricing to customers."

F&B operators said they are glad for the option of a more affordable delivery platform.

Mr Jason Chua Rong Yang, 28, co-owner of Beng Who Cooks, which is located at Hong Lim Market and Food Centre, said he decided to sign up with the platform since it does not take any allowance or commission from vendors.

"As hawkers, our profit margins may be relatively small compared to other F&B operators. Based on our experience, other platforms may charge a fee of up to 34 per cent which may eat into our already-thin margins."

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