Burgertory recently complained about how GrabFood was discriminating against them, in favour of larger businesses, or those who can pay them higher commissions.
Find out what happened to Burgertory, and why GrabFood could be manipulating what you can or cannot order, to make more money!
Burgertory vs GrabFood : A Quick Primer
Burgertory – a small gourmet burger restaurant – had been using GrabFood for food deliveries for more than a year.
However, they recently noticed that GrabFood kept listing their business as unavailable, even though they were open for business.
Oddly, other restaurants in the vicinity were listed as available, just not Burgertory. When they complained to GrabFood, they were told that restaurant availability was turned on or off based on :
- differences in commission rate – commission per order (25% to 35%)
- differences in sales bucket – the value of each order
In other words, what you see on GrabFood is not what’s really available, but rather – which restaurant is more willing to pay them more commission, or can generate them more money.
If you want to know more about what Burgertory posted, please scroll to the bottom of this article.
Recommended : GrabFood Clarifies Restaurant Availability Controversy!
Burgertory vs GrabFood : Some Updates!
First of all, Grab issued an official press release, stressing they do not turn restaurants off based on commission rate, but there was no mention of the sales bucket.
In a Facebook comment, they said that Burgertory was switched off the first time, because a GrabFood rider arrived and found them closed.
However, Burgertory pointed out that they kept Grab updated on their operating hours, and the rider arrived late – after they closed at 8 PM, and they were not alerted to the rider’s report, or that they were being switched off.
Burgertory also posted a separate update, sharing that Grab told them other merchants “has paid campaigns with them, and the difference in the discoverability radius is to help with the campaign ROI“.
GrabFood Discrimination : Bad For Almost Everyone
If what they were told is true, then GrabFood is intentionally turning off visibility to potential customers, in favour of higher profits from their merchants.
They are no longer acting as a neutral platform, but becoming a gatekeeper of sorts, giving those who can pay more, greater access to customers.
This is naturally bad for merchants, who already have to pay rather exorbitant commission – 25% to 35%. With such a discriminatory system, they will be forced to pay more just to stay visible on their platform.
This is also bad for customers, because our choices will be limited to what GrabFood decides makes them more money, not what’s actually available.
They would be essentially deciding who you should order your food from. And limiting you, not to those with better food ratings, but those who can pay them more.
Eventually, food prices will go way up, because merchants have to increase their GrabFood commissions to “stay visible”, and the additional cost will be added to your meals.
It’s not bad for everyone though. As long as customers remain ignorant, restaurants will be “encouraged” to pay GrabFood more money. It will work out great for GrabFood.
Burgertory vs GrabFood : What Happened?
Here are the details of the Burgertory vs GrabFood scandal. It started with a Facebook post by Burgertory on 4 June 2020 :
After the public uproar, GrabFood quickly reached out to them the very next day to “discuss the issue”.
They clarified that Burgertory did not get “switched off” because of their lower commission, but did not explain why some restaurants get “switched off”, while others don’t.
Grab has since issued an official press release, which you can read @ GrabFood Clarifies Restaurant Availability Controversy! We also asked them some additional questions on this controversy.
Burgertory vs GrabFood : What Are Other Merchants Saying?
Here is a selection of what other merchants posted on their own experiences :
- GrabFood Clarifies Restaurant Availability Controversy!
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