• Focusing on different types of charges involved in online food orders 

By Imesh Ranasinghe  Lakshan Senvirathne (25) ordered a meal through the Uber Eats app for him and his family on one weekend and was surprised to see the app had mentioned packaging charges of about Rs. 200 for each of the three food items plus a tax of Rs. 30 for his order.  Lakshan, who usually orders in on weekends from the US-based Uber Eats and their local competitor PickMe Food has faced many such instances where he was charged packaging fee, tax, handling fee, high demand fee, and a small order fee in addition to the delivery fee on orders.  He is among the many other consumers in the country who have faced difficulties when it comes to the charges they have to pay for ordering a meal through Uber Eats and PickMe Food especially with the on and off lockdowns the country has gone through in the last one and half years of the pandemic.  “I think the small order fee is ridiculous. I mean if we are paying for the item, delivery fee, and commission, why would it matter if the bill is 100 or 1000 rupees,” Munza Mushtaq, a journalist said on Twitter.  “Uber Eats has been doing it for a while charging Rs. 50 and as of late PickMe Food too has followed suit albeit charging less at Rs. 30 for small order fee. All this with the commission I appreciate the service of both platforms during these times but this is unacceptable. For example, a sandwich bread with a 190 in-store price is 220 on both these platforms, if I order one, it’s 220 + 30 (small order fee) + delivery fee and I end up paying 290 for one loaf of bread,” another consumer said on Twitter.  However, many consumers have been reluctant to complain about such charges to the respective companies as they think one individual voice would not make a difference.  “I didn’t think a common individual could make such an impact to alter the policies of such an industry. I thought to just take it to the press and let a collective voice make the impact,” Lakshan said, speaking to us.  Another consumer who wished to remain anonymous said he didn’t bother to escalate the issues on unnecessary charges since it was the same with every user, but added that the collective raise of the issue is the only way to address it.  “This is something we need an explanation for because we are paying for so many additional charges. I understand PickMe and Uber need to make a profit and as I see it, this is the commission included with the price of the food. My main issues are with small order fees, handling fees and high demand surge,” he explained.  Restaurants unhappy over commissions  Colombo City Restaurant Collective President Harpo Gooneratne said on Twitter that most restaurants have a huge problem with commission fees charged by food delivery services such as Uber Eats and PickMe Food as they are upsetting restaurant owners and also customers adding that the service and hygiene conditions are scary.  Speaking to The Sunday Morning Business, Gooneratne said that huge commissions charged by certain platforms are not at all helping the restaurant industry as some restaurants have to pay 30% of the commission on orders.  He said if such a huge commission is paid for orders then the restaurants will find it difficult to make money to cover the food costs, staff costs, electricity and other related costs.  Gooneratne stated that even though restaurants decide on the price of the food items sold through the apps, the companies decide the commission they charge on restaurants depending on the data available with them regarding each restaurant.  He said that different commissions are charged from different restaurants and it differs from 15-35%.  Moreover, he said certain restaurants have also started to charge for packaging which adds more to the bill that the consumer has to pay at the end.  “The restaurants are dependent on them due to the lockdown, So they know the restaurants can’t survive without them,” he said.  “I think the Government should regulate them. The Consumer Affairs Authority should look into this matter, as they cannot charge extrabited rates. While they (Uber Eats and PickMe Food) can’t be running on losses there has to be some form of price control,” he added.  However, he said the delivery services provided a good means of connecting the consumers and the restaurants during the pandemic, but added that many restaurants with the pandemic have started their own delivery service because they could not sustain the commission factor of Uber Eats and PickMe Food.  Meanwhile, a rider who had worked at Uber Eats and PickMe Food said that many consumers and restaurants complain to them about the higher charges and commission charged by Uber Eats.  He said since the commission charged by Uber Eats is higher than PickMe Food, many restaurants complain to him about it.  Consumer Affairs Authority studying the matter  Consumer Affairs Authority (CAA) Director – Competition Promotion M.M.S.K. Karunarathne told us that the country has no framework at present to monitor the online delivery services but since there are changes in the charges a study is being conducted right now by the CAA to determine whether those services need regulatory framework in the future.  She said that during the last few months the number of complaints by consumers regarding online delivery services has increased and as a result of that the CAA has decided to conduct the study. She added that a letter was written by her to the main online delivery services in the country asking for the details about their services to conduct the study.  Consumer Rights group says no need of new regulations  But National Movement for Consumer Rights Protection (NMCRP) Chairman Ranjith Vithanage said that according to Section 34 of the Consumer Affairs Authority Act, the CAA could carry out an investigation with respect to the prevalence of any anti-competitive practice based on complaints made by consumers or any consumer organisation.  “They have provisions in the Act to bring any company or trade institution and discuss with them the issues based on complaints received. They cannot excuse it saying there are no laws to take actions against such companies, as they are bound to formalise the trade and protect the rights of the consumers,” he explained.  Since the CAA had not summoned the representatives of the relevant companies based on the complaints received so far, he said the CAA is behaving in a manner favourable to those companies.  He noted that the CAA and the NMCRP has received a high number of customer complaints from the Gampaha and Colombo Districts regarding Uber Eats and PickMe Food.  He added that even though many restaurants deliver, most of them have limits on the distance they deliver their orders, so many consumers are using Uber Eats and PickMe Food to get their orders delivered.  Moreover, he noted that there is no problem in Uber and PickMe doing business but the problem is the lack of a fair process on how the prices are charged on consumers.  Uber Eats replies, but PickMe Food denies  The Sunday Morning Business sent questions to both companies based on what the consumers told us.  PickMe Food informed us that they have decided not to answer our questions after a week from the date the questions were sent.  However, a spokesperson for Uber said that customers are charged a delivery fee on all orders, which is visible upfront before selecting a merchant, as well as on the checkout page before placing an order, and on the receipt after the order is delivered.  “In some cases, a consumer may be charged Value Added Tax (VAT) depending on the merchant they order from. Merchants are responsible for the menu prices and applicable statutory taxes applied on them,” the spokesperson said.  In cases of high demand, a Busy Area Fee may also be applicable to ensure high reliability for consumers. Depending on the value of the order, a Small Order Fee may also be applicable.  Further, on the transparency of the charges, the spokesperson said that all charges are broken down for transparency at the point of checkout before placing an order, as well as in the digital receipt that is provided after the order is delivered. Delivery fees are also shown upfront when consumers select a merchant before deciding on the items in their order.  Further, the spokesperson said that the handling fees are imposed by merchants and not by Uber Eats.