Delivery platform commission rates need urgent regulation, says industry group

Industry representatives have renewed calls for regulatory oversight of commission structures imposed by major food and goods delivery platforms, warning that current fee schedules are placing undue financial strain on merchants across the region.

The Samenta merchants' association highlighted the disparity between current practices and proposed safeguards, with leadership pointing to commission rates that have escalated to as much as 32% per transaction. The association's president William Ng stressed the need for legislative intervention to establish a ceiling of 20% on platform commissions, arguing that existing arrangements undermine the viability of small and medium-sized businesses that depend on these channels.

The push for regulation reflects growing tensions between delivery platforms and merchant communities over fee structures. Platform operators argue that commissions reflect operational costs, marketing investments, and technology infrastructure, while business owners contend that escalating charges erode already thin profit margins and place them at a competitive disadvantage.

Government policymakers across Southeast Asia have faced mounting pressure to address platform economy practices. The call for a 20% commission cap suggests authorities may be moving toward establishing pricing frameworks that balance the interests of consumers, merchants, and platform operators in the rapidly expanding digital delivery sector.