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INDUSTRY BACKGROUND
Online food delivery services are provided
by companies such as Deliveroo, FeastBump,
Foodpanda, Gourmet To Go, UberEats and What
to Eat. Customers can browse and order online
from a selection of restaurants’ menu items for
delivery. The industry has grown tremendously
over the past year, attributed largely to the ease
and convenience that customers can enjoy.
FUTURE ACTION
CCS has ceased its investigation. It will
continue to closely monitor the market as such
exclusive agreements could be problematic
in the future. Feedback from restaurants and
INVESTIGATION FINDINGS
Competing online food delivery
providers have expanded
significantly over the past year.
CASE TEAM MEMBERS
Ng Ming Jie, Ng Jia Le,
Tan Hi Lin
Online food delivery services also serve as a
marketing channel for restaurants to reach a
wider pool of customers and generate additional
revenue, without the costs of expanding their
dine-in services. The online food delivery
industry is presently characterised by various
new entrants that are competing aggressively,
and market shares are changing significantly.
Exclusive agreements have been
used by online food delivery
providers as one method to attain
market shares.
1
The current exclusive
agreements have not harmed
competition in the industry
and the industry is currently
competitive.
2
3
After the investigation
commenced, a delivery provider
stopped introducing exclusive
agreements with restaurants.
However, at the same time, other
providers have been using such
agreements to gain market share.
4
other industry stakeholders are welcomed, and
these will help CCS to assess developments
and practices in the industry, including
whether there are other restrictions that are
impeding competition.
Online food delivery
providers were found
to be using exclusive
agreements with
restaurants to attain
market shares. Such
exclusive agreements
may restrict competition
and infringe competition
law, should the provider
becomes dominant. CCS
encouraged food delivery
providers to compete
on merit, instead of
relying on exclusive
agreements, to keep the
market vibrant with more
choices for restaurants
and consumers.
MR NG MING JIE
Senior Assistant Director, Policy &
Markets Division
ANNUAL REPORT 2016
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