Gov’t issues guidelines to regulate food delivery industry

The government has issued new guidelines aimed at the food delivery sector, with a focus on ensuring clear service fee standards and calculation methods for merchants.

The Economic and Technological Development Bureau (DSEDT), in collaboration with the Consumer Council, met with representatives from three local food delivery platforms to discuss the implementation of these guidelines.

The guidelines emphasize that delivery platforms are prohibited from requiring merchants to sign exclusive cooperation agreements of any kind.

They also stress the need for platforms to respect merchants’ autonomy, particularly in choosing whether to participate in promotional or discount activities, and prohibit any form of coercion in encouraging participation in marketing campaigns.

Additionally, the guidelines call for platforms to establish robust delivery management systems to ensure timely order fulfillment by delivery personnel. All fee items and pricing on the platforms should be clearly displayed.

“Takeaway platforms should honestly comply with the contract and quality charter, establish a perfect takeaway delivery management mechanism, and ensure that takeaway delivery personnel complete orders on time,” according to the joint statement.
“At the same time, the billing items and prices charged by the platforms should be clear and explicit, and dedicated channels for consumers to submit complaints and opinions should be set up to ensure that opinions are promptly handled and resolved,” it added.

For the bureaus, these measures are intended to promote a fairer, more transparent environment for both merchants and consumers.

Industry representatives have previously highlighted that small and medium-sized enterprises (SMEs) are particularly affected by the rise in commission fees imposed by food delivery platforms, with commission rates reaching up to 50% per order.

“This increase, combined with the necessity for businesses to participate in promotional campaigns, has put considerable strain on restaurant profitability, Aeson Lei, president of the Macao Catering Industry Association, previously said.

Some industry observers argue that Macau’s limited market size further complicates the situation, with many residents opting to dine across the border for more affordable options.

The association pointed out that many establishments feel pressured to engage in platform-led promotions that significantly impact their profit margins.