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Though competition among food delivery applications has more or less come to a boil, the Digital Economy Promotion Agency (DEPA) realised that these platforms with high commissions hardly help small and medium eateries.
So the agency hit upon the idea to introduce an entirely new platform for the purpose, deciding to join hands with local company Food Ordery, a TV Direct affiliated firm, to launch “eatsHUB”.
This collaboration is part of Thailand’s National Delivery Platform project that aims to help small entrepreneurs and food vendors access online services with affordable operational costs and high benefits while matching consumer lifestyles.
Digital Economy and Society Minister Chaiwut Thanakamanusorn said the launch of eatsHub would be a concrete start to Thailand’s digital transformation and improve the country’s competitiveness.
And following the introduction of eatsHUB, Chaiwut said the ministry is now considering launching more platforms in other areas including travel, accommodation, e-commerce and even on the blockchain.
DEPA president Nuttapon Nimmanphatcharin said the food delivery platform business is a large segment, so many companies want to increase their market share to become a leader.
“Such fierce competition leads to high operating costs, including a commission fee, which is now around 30 per cent,” he pointed out.
DEPA felt such a high commission would not help small and medium-sized food stall owners boost their earnings through online channels.
But now with eatsHUB charging food vendors a gross profit (GP) share of just 8 per cent, lower than other online delivery platforms, eateries can retain the same food prices charged at their stores. Also, the low GP benefits buyers as well as riders.
Nuttapon said the DEPA expects to gain 500,000 registrations and see the app used more than 5 million times, creating an economic value of over THB500 million in the first year alone and roping in around 2,000 new riders.
“The DEPA has funded around 20 per cent of the operational budget, while 80 per cent has been covered by Food Ordery and other venture capitals via fund raisers. We are also helping them improve the platform by matching them with other potential developers and using big data to connect the platform with users nationwide,” Nuttapon said.
Food Ordery Chief Executive Officer Thammanit Khamwangyang said eatsHUB’s strength is its low commission, rapid cash transfer for sales within the next day without a minimum rate, an easy-to-use platform with a call-centre option, several promotions and big data analysis, while sustaining food vendor quality to meet high standards.
“Apart from expanding the service area, we will provide a sort of cloud kitchen for our vendors. We also support our riders by providing them with some welfare and insurance. Plus we plan to set up a leasing service to help riders obtain motorcycles,” Thammanit said.
The platform is currently available for food delivery in four Bangkok areas – Bang Khen, Chatuchak, Ladprao and Suan Luang – before expanding to cover the whole capital and its vicinity by July. And by the end of the year, the service will move further afield to cover 17 provinces – Ayutthaya, Chiang Mai, Nakhon Sawan, Phitsanulok, Nakhon Si Thammarat, Phetchaburi, Surat Thani, Phuket, Songkhla, Chonburi, Chanthaburi, Rayong, Nakhon Ratchasima, Khon Kaen, Udon Thani, Ubon Ratchathani and Nakhon Phanom.
Published : May 12, 2022
By : THE NATION