App-based food delivery services have agreed to cut their gross profit share (GP), normally charged to eateries at 30-35%percent, to 25%, while eateries also agreed to lower food prices by as much as 60% during June, in Bangkok and its suburbs.

The agreement to lower GP share and food prices was reached at a meeting, held earlier this week, between representatives of Grab, Gojek, Lineman, Foodpanda and Robinhood, eateries in Bangkok and its peripherals, financial institutions and Deputy Prime Minister and Commerce Minister Jurin Laksanavisit.

All, except Robinhood, have been charging eateries using their service to promote sales, after dine-in services were restricted to contain the spread of COVID-19.

The food delivery services also agreed to exempt delivery charges for the first 3-5km.

Mr. Somsak Kiatchailak, secretary-general of the Trade Competition Committee, said that the GP share cut will be a morale booster for eateries, albeit for only a month.

He added, however, that, if COVID-19 infections do not slow in June, he might ask the delivery services to extend their GP cut.

To help food and beverage operators to weather the difficult circumstances, the Commerce Ministry has asked financial institutions to provide them with soft loans and to arrange for online communication between eateries and commercial banks,so they can discuss loans and terms of payment.