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Pandemic boom in Taiwan’s food delivery fades as fees bite

Reporter Jamie Lin Pinzon
Release time:2024/06/27 16:17
Last update time:2024/06/27 16:17
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TAIPEI (TVBS News) — Many businesses turned to food delivery platforms to sustain operations during the pandemic. However, high commission fees have prompted some to reconsider their reliance on these services. 

Food delivery platforms typically charge restaurants between 30% and 35% per order, in addition to other fees for listing and usage. This has led to a decline in the number of orders, which are now approaching pre-pandemic levels.

 

Active users remain loyal to the platforms, while others prefer to purchase directly from stores. According to the Market Intelligence & Consulting Institute (MIC), the overall user base for food delivery platforms shrank by approximately 2.3% in 2023 compared to the previous year. Conversely, the proportion of subscribing members has risen by 5% to 38.5%.

MIC industry analyst Nephy Hu highlighted a trend toward an M-shaped market, where despite a rise in subscribers, the number of passive users has also grown. This suggests a diverging user base within the competitive food delivery sector. To secure growth, companies must explore differentiated and diverse business strategies.