The All Pakistan Restaurant Association decided to boycott Foodpanda in Karachi for three days started from September 15 till today.

In a letter, APRA chief Muhammad Naeem Siddiqui complained to the CEO of Foodpanda regarding therecent hike in commissions and announced that the APRA will be observing a three-day boycott in Karachi. Food delivery services are likely to be affected by this development, reported Samaa.

As per the details of the letter, Foodpanda has been pushing for an increase in its commission prices which results in massive consequences for several restaurants, especially the startups. Due to the pandemic, restaurant industry has suffered economically and is not in a position to bear additional commission charges, the letter explained.

Siddiqui added that the industry works on low margins and hence, it is impossible to pay 25-35% commission to Foodpanda. This makes it essential to have an upper ceiling on the commission that the company is allowed to charge.

He further warned that if Foodpanda does not cooperate, APRA may have to permanently cancel its alliance with the organization. He even accused the managers of Foodpanda of blackmailing restaurants owners to cooperate with them.

Members of APRA will be closing off their tablets until their grievances are addressed.