KUALA LUMPUR: Delivery service providers using motorcycles in Malaysia such as Grab have been taken to task for their exorbitant charges imposed on small and medium enterprises (SMEs).
The Small and Medium Enterprises Association of Malaysia (Samenta) claimed that the "extortionist commission" against the local SMEs resulted in Malaysians paying anything from 10-100 per cent more when buying off these platforms compared to purchasing directly with the respective merchants.
Disclosing this today, Samenta president Datuk William Ng outlined four demands that must be addressed when Prime Minister Datuk Seri Anwar Ibrahim meets with food, beverage and parcel hailing (p-hailing) delivery service providers using motorcycles.
"Why are Malaysian SMEs being charged up to 32 per cent in commission when Meituan in China can charge as low as five per cent (in commission)?
"Why are larger restaurant chains being charged as low as eight per cent while SMEs, with lower margins, are being charged 32 per cent plus other promotional charges?
"Are Malaysian SMEs subsidising the businesses in Vietnam?
"Will these companies open up their books and show the revenue, rebates and subsidies and costs for the Malaysian market versus that of Vietnam and Indonesia?" he questioned in a statement.
This comes after the Transport Ministry confirmed that p-hailing companies will meet the prime minister on Aug 8 to seek direct clarification on the issue of declining wages for delivery services.
Ng said the demands primarily revolve around the high charges imposed on SMEs as well as the subsidies and assistance that p-hailing companies can provide, as done in other countries.
Elaborating on the demands, he cited that food stalls wanting to join the p-hailing platform must pay a 32 per cent commission to the involved company.
He added that if the stall owner wish to participate in the platform's promotions, they would have to pay an additional commission of up to 30 per cent, otherwise their stalls will be less visible on the platforms than those who coughed up the extra commission.
As a result, most SMEs have no choice but to increase the prices of their products on these platforms to cover the extortionist commission.
This resulted in Malaysians paying anything from 10 to 100 per cent more when buying off these platforms compared to purchasing directly with the respective merchants.
"On the pretext of supporting innovation and encouraging greater digitalisation and e-commerce, these p-hailing operators have escaped regulatory oversight, and in the process victimising and enslaving the very industry they purportedly support," he said.
Sharing his recent experience during a visit to Vietnam, Ng found that that Grab provided substantial subsidies for its transportation and food delivery services.
For instance, he mentioned that a two-kilometre ride in District 1 of Ho Chi Minh City cost 21,000 Vietnamese dong or about RM4.
In comparison, a similar distance from Wisma Genting to Menara Maybank here incurred RM16 on a "surge" pricing, which was 400 per cent the fare in Vietnam.
"Similarly, I ordered some food delivery from a local stall in Vietnam and discovered that after heavy subsidisation from Grab, an order of five seafood dishes cost a mere 148,000 dong (about RM 28).
"This begs the question: are the exorbitant charges Malaysian SMEs are paying to the p-hailing companies used to subsidise businesses in other markets where these companies are trying to gain stronger market share?" he asked.
Ng stressed that it is crucial that Malaysia encourage greater choice and competition within the p-hailing industry.
He said if it is not possible due to the monopolistic and oligopolistic nature of the industry, then it is time to consider breaking up these players by limiting their ability to service multiple industry sectors and/or to limit their commissions via legislation.
Source: https://www.nst.com.my/business/2023/08/939317/grab-other-p-hailing-firms-impose-extortionist-charges-malaysian-smes