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Ordering food in Taiwan is about to get more expensive. Ahead of a new food delivery law taking effect on July 21, Uber Eats has announced major fee increases, with Uber One’s monthly subscription jumping more than 60% from NT$120 to NT$199, while merchant service fees are also rising. Foodpanda says the costs of each order could increase by 30% to 50%. While some restaurant owners accept commissions of nearly 40% as the price of advertising and reaching new customers, many diners and small businesses worry the extra costs will ultimately be passed on to them, making takeout an even pricier convenience.

It’s not even noon yet, but there’s already tall piles of bentos on every table. Everyone at this shop in Shilin District is rushing to get everything ready, after receiving an order for 500 lunch boxes from seven or eight tour buses. Delivery platforms have brought them customers from outside the neighborhood.

Wang Cheng-wei
Bento shop owner
We’ve been on delivery platforms for four or five years. We split the revenue based on a commission rate we agreed on. They’ve helped us reach new customers, people who aren’t nearby.

But the commission rate can be steep.

Wang Cheng-wei
Bento shop owner
The commission can be close to 40%. Delivery isn’t our main source of income, our regulars are. But we consider it a form of advertising to increase our visibility.

With a new food delivery law that’s taking effect on July 21, Uber Eats has announced it will hike service fees to partner vendors by 2.5 to 3 percentage points. And customers paying for Uber One memberships will have to shell out 66% more in fees, as monthly plans will rise from NT$120 to NT$199, and annual plans from NT$1,200 to NT$1,990. Foodpanda says it will also make adjustments, as it estimates the cost of each order will increase by 30% to 50%.

Customer
Uses food delivery apps
My credit card is charged automatically, so I don’t really pay attention. But I might check whether other platforms are cheaper, and consider switching.

Cheng Li-chia
Union chair
I think the platforms aren’t being transparent about their profit figures. We think they’re using the law as an excuse to raise prices. This matter should be discussed rationally and based on the facts.

The new law aims to protect the rights of delivery workers, vendors and consumers. But if it ends up being used as a scapegoat to raise prices, for some restaurants and consumers it could be the final straw.

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