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The real facts and Foodpanda’s flimsy arguments

Published : Monday, 12 October, 2026 at 7:30 PM

Observer Online Report

Restaurant owners in Chattogram have protested against what they describe as exploitative business policies by multinational food delivery platform Foodpanda, alleging commissions of 30 to 35 per cent, hidden charges, unilateral penalties and delays of up to 13 days in receiving payments.

The Chattogram metropolitan branch of the Bangladesh Restaurant Owners Association has demanded fair treatment and transparency, saying restaurant owners have been pushed to the limit. The association has criticised Foodpanda’s explanations, which it says rely on separate agreements, global policies and customer service requirements to justify its business practices.

The association has warned that restaurants in the Chattogram region will stop accepting orders through Foodpanda and suspend services indefinitely if their demands are not met.

1. Commissions and additional charges

Foodpanda charges restaurants commissions of 30 to 35 per cent, according to the allegations. Restaurant owners have also raised concerns about additional deductions for online payment fees, VAT, tablets and internet services.

Foodpanda has reportedly argued that the charges cover its global service costs, marketing expenses and compliance with government regulations.

Restaurant owners have rejected the explanation as unjustified and exploitative. They say domestic delivery platform Foodi provides similar services with a commission of just 15 per cent, while Foodpanda charges more than twice as much, citing its international brand.

According to the owners, the higher charges reduce the profits of local small and medium-sized businesses while benefiting a multinational company.

2. Unclear invoices and complicated accounting

Restaurant owners have accused Foodpanda of issuing complicated and unclear invoices for months. They claim the invoices do not clearly explain the amounts deducted under different categories or the reasons for the deductions.

Foodpanda has reportedly said restaurants can contact their designated account managers directly.

However, restaurant owners argue that this arrangement does not adequately address their concerns. They allege that account managers fail to provide clear explanations of deductions when disputes arise. They say direct communication cannot replace transparent, detailed invoices.

3. Forty per cent compensation for cancelled orders

Restaurant owners say they face substantial financial losses when orders are cancelled because of Foodpanda’s technical problems or mismanagement by its riders.

Foodpanda has reportedly said it covers 40 per cent of the food’s production cost under its global policy, while the remaining amount is handled through marketing expenses.

Restaurant owners have described the policy as one-sided and unfair. They argue that preparing food involves the full cost of ingredients and labour, and question why restaurants should bear 60 per cent of the loss when an order is cancelled because of Foodpanda’s own negligence.

4. AWGF penalties and alleged harassment

Restaurant owners have alleged that they face substantial fines under the Average Wait Time Fine (AWGF) system when riders arrive late.

Foodpanda has reportedly defended the penalties as necessary to maintain service standards under its international standard operating procedures (SOPs), which it says are followed in 70 countries.

However, restaurant owners argue that international policies should not be used to make them responsible for Chattogram’s traffic congestion or problems with Foodpanda’s rider-tracking system.

They allege that imposing fines without jointly investigating the reasons for delays forces restaurants to bear the cost of operational failures beyond their control.

5. Deductions following customer complaints

Restaurant owners have alleged that money is deducted directly from their bank accounts when customers complain, without giving the restaurants an opportunity to present their explanations or supporting evidence.

Foodpanda has reportedly said the policy is necessary to maintain service standards across millions of orders worldwide.

Restaurant owners argue that the volume of orders does not justify deducting payments without allowing businesses to respond to complaints. They have described the practice as arbitrary.

6. Payment delays of up to 13 days

Restaurant businesses depend on regular cash flow to meet daily expenses. However, owners have alleged that it takes 13 days or more to receive payments for food sold through Foodpanda.

Although Foodpanda reportedly claims to settle accounts weekly, restaurant owners say the actual payments take nearly two weeks to reach their accounts. They argue that the delays make it difficult for small businesses to cover operating expenses, electricity bills and employees’ salaries.

Allegations of intimidation and calls for legal action

The restaurant owners’ association has alleged that, after it took a firm stand against the platform’s business practices, Foodpanda made what the association described as baseless allegations that its members had engaged in intimidation and threats.

The association claims Foodpanda is using separate bilateral agreements to undermine collective protests.

Restaurant owners argue that signing a contract does not mean surrendering their rights and that one-sided commercial agreements should not be beyond scrutiny.

They say the dispute in Chattogram is not merely about reducing commissions but also concerns what they view as the excessive market power and aggressive business practices of a multinational company.

The association has called on the Directorate of National Consumer Rights Protection, the Bangladesh Competition Commission and the Ministry of Commerce to intervene in the online food delivery market.

Restaurant owners have warned that they will boycott Foodpanda in Chattogram unless commissions are reduced to a maximum of 15 per cent, invoices are made fully transparent and unjustified penalties are stopped.

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