Growing concerns are emerging among home-based food businesses over foodpanda’s commission structure, with reports suggesting that some home chefs may be paying up to 30 percent of their earnings in platform commissions and related service charges. The exact deductions can vary depending on the seller’s agreement, location and additional fees charged by the platform.
For many small food entrepreneurs, these charges have become a serious and unsustainable financial burden. If a home chef sells food worth Rs. 100, nearly Rs. 30 may go toward commissions and platform charges alone — leaving only around Rs. 70 before accounting for the cost of ingredients, packaging, delivery-related expenses and utility bills. When all costs are factored in, the actual profit left in a home chef’s hands can be remarkably small.
Home chefs typically rely on food delivery platforms like foodpanda to reach a wider customer base without having to invest heavily in marketing or physical outlets. However, many are now arguing that the high commission rates are steadily eroding their already thin profit margins and making it increasingly difficult to grow or even sustain their businesses. Some entrepreneurs say they have been forced to raise menu prices just to offset the platform charges — a move that can hurt customer demand and drive buyers away.
The situation is made worse by the fact that small food businesses are already grappling with rising prices of raw materials, fuel and packaging — costs that have gone up significantly in recent months.
Industry observers believe that finding the right balance between platform fees and seller profitability will be essential if Pakistan’s rapidly growing home-based food business sector is to continue thriving and providing livelihoods for thousands of families across the country.
