P-hailing companies to submit policies for service improvement

by AZREEN HANI/ pic by MUHD AMIN NAHARUL

MALAYSIA’s major P-hailing companies FoodPanda Malaysia Sdn. Bhd. and Grab Malaysia are given two weeks by the Domestic Trade and Consumer Affairs ministry (KPDNHEP) to submit proposals and comprehensive policies for the improvement of its services.

According to the ministry, both companies need to outline measures to be taken by them in the near future to improve the services offered to consumers, traders (vendors) and shippers (riders) including reviewing lowering charge rates than current rate.

“The P-hailing company has agreed to respond to Ministry within fourteen (14) days over the following matters: A clear and orderly communication plan from the company to traders, consumers and shipperss, a clear application system and does not confuse traders and users and shipping charge, commission and wage payment policy,” KPDNHEP said in a statement today.

It added that the ministry has held an engagement session with both companies and the CEO of Malaysia Competition Commission (MyCC), Iskandar Ismail on Jul 29. 

Also present were Datuk Rosol Wahid, Deputy Minister of Domestic Trade and Consumer Affairs and KPDNHEP secretary-general.

“This engagement session is a follow -up to the Ministry’s media statement before this and it aims to understand the whole business operation and cost structures as well as discussing arising issues on the food delivery industry (p-hailing),” KPDNHEP added.

It also touched on people’s complaints relating to the commission rates charged by P-hailing companies particularly during the Movement Control Order (MCO) and the National Recovery Plan (PPN) phase at present.

On Monday, MyCC said it has met with relevant parties including food and beverages (F&B) and retail industry players to understand the issues raised by them.

“Based on the series of meetings held, we have identified several concerns and challenges in the industry, in relation to not only competition but also consumerism. The way forward for us is to actively engage with the food delivery platform providers,” Iskandar said in a statement.

Iskandar said MyCC is seriously looking into every angle from the perspective of the Competition Act 2010, particularly on the conduct of these food delivery platform companies towards F&B industry players, riders and consumers and whether it raises any competition concern.