Allegations mount against Foodpanda

Allegations over supplier payments, value-added tax (VAT) compliance and competition practices have raised questions about the business transparency and accountability of Foodpanda Bangladesh.

As digital platforms expand their influence in Bangladesh’s food delivery and e-commerce sectors, transparent business practices, fair supplier agreements and regulatory compliance have become increasingly important.

According to allegations cited in a report, Shihab Mahmud Bashir, owner of Protein and Perishable, began supplying vegetables and fruits to Pandamart, a Foodpanda affiliate, on June 23, 2022. He later alleged irregularities in payments, transfers of amounts lower than the value of supplied goods, and the withholding of dues through the use of certain documents and return-to-vendor slips.

The allegations have raised questions about the company’s internal controls, particularly its procedures for receiving goods, processing returns, reconciling accounts and settling supplier payments.

For large digital platforms handling high volumes of transactions, clear documentation, internal audits and effective complaint-resolution mechanisms are essential. When disputes arise, transparent reviews and proper record-keeping can help establish accountability and maintain business confidence.

The report also mentions a legal case against five Foodpanda Bangladesh officials over a dispute concerning supplier payments, along with the issuance of arrest warrants. It further states that the officials secured anticipatory bail.

Separately, allegations of VAT irregularities involving around Tk 3.40 crore have been raised against Foodpanda. The reported issues include sales records, service classification, VAT liabilities, VAT on rent and tax deducted at source.

In another development, the Bangladesh Competition Commission reportedly fined Foodpanda Tk 10 lakh following a complaint by MGH Restaurants Private Limited. The report also refers to a directive preventing the platform from obstructing restaurants from entering into agreements with competing platforms.

Digital platforms can expand business opportunities by connecting restaurants with customers. However, contractual terms that restrict restaurants from working with other service providers can raise concerns about market competition and the ability of new businesses to enter the sector.

The allegations and reported regulatory actions have placed Foodpanda’s business practices under scrutiny. Their implications extend beyond the company’s reputation, potentially affecting suppliers, restaurant owners, small and medium-sized businesses and consumers who depend on the platform.

For a platform connecting thousands of businesses with customers, transparent transactions, fair contractual terms and effective accountability mechanisms are essential to sustaining trust.

sks