According to the sources, the Competition Commission of Pakistan- CCP has recently started to inquire against Foodpanda that is the topmost online food delivery service of Pakistan.
The investigation is against the violation of Sections 3 (Abuse of Dominant Position) and Section 4 (Prohibited Agreement) of the Competition Act, 2010. Foodpanda is investigated for its abusive behavior and strategies against the new entrants in the market for food delivery services.
Cheetay Logistics Pakistan Ltd. has filed a formal complaint against Foodpanda and the investigation is initiated under Section 37 of the Act on May 4, 2021, and also by the APRA- the All Pakistan Restaurant Association on June 10, 2021. Moreover, another topmost brand Careem has also filed a complaint against Foodpanda.
Foodpanda has been preventing the market competition; however, the inquiry team will review the findings as the concern for this matter has been highlighted by other market players and the rivals of the brand.
According to the official reports, a fact-finding exercise was conducted by the Cartel and Trade Abuse Department of CCP where it was declared that Foodpanda is playing a dominant role in the online food delivering market as the brand independently delivers more than 100K orders per day across the nation.
Charging high commission, offering various discounts and many other practices comes under the light of inquiry where Foodpanda’s strategy is forming a monopoly to not let any other food delivery brand to grab customers through various means.
The investigation for the prohibition of the agreement for abusing competitors, following anti-competitive behavior, or taking advantage of power (dominant position) will soon result in the final findings in order to enhance the efficiency of the businesses as well as the economy.
New entrants of online food delivery services in the market have notified the issue as an alleged abuse against them, where the team of CCP is inquiring against the matter and will soon share the findings as per the Competition Act to ensure the free competition in overall dimensions of commercial and economic activities.
