Delivery App Fee Cap Proposed

MP seeks legal framework to curb high commissions and protect small businesses

TDT | Manama

Email: mail@newsofbahrain.com

A proposal to cap the cut taken by food delivery apps has been put forward after claims that fees of up to 30% are squeezing small firms and driving up prices for customers.

MP Jaleela Alawi submitted the parliamentary plan, which calls for new rules to govern delivery apps and shield small, medium-sized and micro businesses from excessive charges.

It urges the government to draw up a full legal framework for the sector, covering commissions, contracts and complaints.

The plan calls for curbs on the sums taken from restaurants, cafés and shops, along with a study into a fixed ceiling on commissions or another form of price control.

Apps would have to tell traders about every fee, commission and method of calculation before any deal is signed.

Contracts containing unfair terms or clauses that curb fair competition would also be banned.

A watchdog would hear complaints from businesses, look into claims of unfair conduct and have the power to step in and take action.

Alawi said delivery apps had become a key route to market for restaurants, cafés and shops as growing numbers of customers order meals and goods through their phones.

But business owners say some firms take between 25% and 30% from each order.

For small traders working on thin margins, that can strip away much of their earnings.

The proposal warned that steep fees leave firms with less cash to hire staff, invest or grow. Some raise menu prices to cover the cost, passing the bill on to customers.

Many businesses now rely heavily on the apps to reach buyers, leaving them with little bargaining power and few choices when faced with costly terms.

Alawi said the proposal was not aimed at holding back the digital economy or stopping delivery firms from making money.

She said app firms should earn a fair sum for linking traders with customers and handling orders and deliveries.

But small firms must also be able to keep enough of each sale to stay open, grow and compete.

The proposal said clear rules would curb unfair fees, protect local firms and help keep prices in check.