IAN CHOI, PERLIN ONG and PUVANAA D/O LOKANATHAN reveal how hawkers have adapted to delivery platforms amid pandemic restrictions.
Not long after Singapore’s Phase 3 Heightened Alert pandemic restrictions commenced, new pandemic-induced restrictions were introduced alongside Phase 2 Heightened Alert (P2HA), prohibiting all forms of dining at all Food & Beverage (F&B) establishments.
The ever-changing pandemic restrictions have affected numerous businesses tremendously, especially hawkers, where their survival is largely dependent on the sales from their brick-and-mortar stores.
Dr Amy Khor, the Senior Minister of State for Sustainability and the Environment, said in an interview with The Straits Times that “around half of Singapore’s 6,000-plus cooked food stallholders” have adopted the use of delivery applications.
However, these delivery platforms can impact their merchants financially due to their charge in commissions. Mr Anthony Low Hock Kee, 53, the Chairman of the Federation of Merchants’ Association (FMAS) Hawker’s Division, says that when he was approached by food delivery service FoodPanda, he was informed that there was a commission fee of 30 to 35 per cent for its services.
According to The Business Times, delivery platforms can charge commission rates ranging from 5 to 35 per cent. The costly commissions, reported by The Straits Times, were deemed by hawkers “as a reason why they continue to rely on walk-in customers”.
Alongside the commission charge, according to theonlinecitizen, hawkers were expected to refrain from increasing the costs of their menus. Mr Low, who is also a hawker, feels that the requirement is “unjustified” as he would not profit from his sales. Additionally, he would also have to make further expenses to pay his employees.
Unlike Mr Low, Ms Carol Ang, 28, the owner of a drink store, Colico, feels that the use of delivery platforms are helpful. Despite the commissions, Ms Ang says that the delivery platforms “actually [help] a bit of the sales”. In fact, she feels that the greatest challenge of delivery is keeping up with orders and fulfilling them in time.
According to Ms Ang, delivery orders can be made at any point of the day, which can at times clash with the orders from the store’s “walk-in customers”. On the various platforms, Ms Ang says that customers are also able to provide “feedback and ratings” for the store, which adds on to the stress hawkers have as it can affect the “business’s reputation”.
Furthermore, digital challenges are also present. According to TODAY Online, hawkers are required to use digital marketing to promote their businesses. This can pose a challenge for older hawkers. Apart from marketing, Ms Ang also says that the delivery devices, which certain platforms require, can also be a challenge.
With the pandemic restrictions, more individuals are ordering their meals online. According to Channel NewsAsia, consumer habits have changed during the pandemic as individuals gradually adapt to delivery platforms.
Ms Lau Le Yee, 18, a student from Republic Polytechnic, states that her monthly delivery orders have become a weekly habit since the pandemic. Mr Low considers “online delivery” to be a trend, especially among the younger generation.
The various delivery platforms provide their users with a wide variety of food choices, ranging from small neighbourhood hawkers to the more well-known establishments. Especially on more established platforms like FoodPanda and GrabFood, there is a wider range of food selections. According to The Straits Times, as of 17 Apr, 2020, FoodPanda is used by at least 9,000 F&B establishments. In turn, it creates a competitive environment for the different merchants.
However, Ms Ang feels that there is no need to worry about the competitions on the various platforms. She adds: “Our approach by engaging these kinds of platforms is to make it more accessible to all the consumers.” Mr Low agrees and feels that the use of delivery platforms is more of a method to “approach” and to “create awareness” for his business.
Despite the difficulties and unjust that the usage of delivery platforms can bring, Mr Low still feels that the platforms are a necessity after considering the drastic decrease of dine-in customers and the rise in deliveries.
He says: “We must look for the future and we must change.”
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