Food delivery backs revival

Grab, Line Man support return

Online food delivery operators have voiced support for the government’s plan to reintroduce the “Khon La Khrueng” co-payment scheme.

Chantsuda Thananitayaudom, managing director of Grab Thailand, said Grab fully supports the new government’s direction in reintroducing the co-payment scheme as it should help stimulate the economy, particularly by supporting small and medium-sized enterprises (SMEs) in the food industry.

“We witnessed tangible results from participating in the scheme three years ago, when merchants posted sales growth of up to five times. Once confirmed, we are ready to collaborate to maximise its impact through our marketing campaigns and subsidies,” said Ms Chantsuda.

Representatives of online food delivery providers and the Thai Restaurant Association met with Bhumjaithai party deputy leader Siripong Angkasakulkiat on Tuesday to discuss the issue after the party confirmed it is considering reviving the co-payment scheme as part of efforts to stimulate Thailand’s slowing economy.

The meeting participants also discussed whether food delivery operators could reduce their gross profit fee when participating in the new scheme. However, there was no final conclusion on this matter during the meeting. In the previous scheme, the operators agreed to cut this fee as required by the Fiscal Policy Office.

Yod Chinsupakul, chief executive of Line Man Wongnai, said his company proposed setting a usage period for the programme.

Instead of disbursing the full amount of the subsidy at once, it will be more effective to allocate the subsidy on a weekly quota, said Mr Yod, as it would encourage people to spend gradually over time, helping to sustain consistent economic activity.

According to Line Man Wongnai, average restaurant sales across Thailand have been declining all year. In the second quarter this year, sales dropped by as much as 14%.

The decline was even more pronounced in Bangkok, where sales fell by 16% compared with other provinces.

In central business districts, the drop reached 19%, and in popular areas like Banthat Thong, sales plunged by 35%.

From conversations with many restaurant owners, it’s clear that this year has been especially challenging, Mr Yod said.

“We previously participated in the co-payment scheme, and I believe it was a truly effective economic stimulus. During that period, small restaurants saw sales increasing by between 1.7 and 4 times, and delivery-only sales grew by an average of 2.5 times compared with the pre-programme period,” he said.

Mr Yod said the co-payment initiative is well-suited for SMEs, as the right “boost” could help them operate more smoothly and stay motivated to improve in the long run.

The scheme also helps reduce fraud as customers must co-pay and transactions are with verified, registered merchants, he said.

“If the government decides to relaunch the programme, Line Man Wongnai is ready to provide its up-to-date restaurant database to support the initiative, so merchants won’t need to go through the verification process again,” said Mr Yod.