Waimai platforms will start charging higher commission rate up 3%

Though still flourishing in China, the food-delivery industry (known as “Waimai” in Chinese) is facing escalating operating cost and pressured by investors to boost their margins in a slowing economy. It was recently rumored that big players such as Ele.me and Meituan would hike service fee by 3% and push the total commission rate to 20% at which they charge to restaurants on every order. Some consultants predicted that the increased cost, speaking from the service provider side, will eventually be passed on to customers, or lead to a mass withdrawal from those platforms. However, since some companies are viewing positively the price rise, it’s still too early to draw any conclusion.