Online food delivery companies in Thailand are attracting merchants to join the 'Tai Chai Tai Plus' program by offering various incentives. The program, running from June to September, aims to support merchants in overcoming economic challenges by providing reduced administrative fees and increased advertising visibility.
Line Man Wongnai announced it will invest 200 million baht in media, while reducing administrative fees to 15% for participating merchants. In contrast, Shopee Food has lowered its fees to 13%, reflecting the intense competition among companies in this sector.
Event Details
Merchants can join the Line Man Wongnai campaign starting from June 10. In addition to the fee reductions, the platform offers vouchers worth 5000 baht to boost sales, along with 1200 baht as advertising credit to increase visibility on the app. The company also provides support of up to 10000 baht for purchasing point-of-sale systems, along with loans for merchants from Line BK.
Meanwhile, Shopee Food, the food delivery arm of the e-commerce group Shopee, announced its campaign will run from June 15 to September 30. Shopee Food is also offering vouchers worth up to 9000 baht to increase sales, in addition to 1200 baht as advertising credit.
Background & Context
Participation programs like 'Tai Chai Tai Plus' are part of the Thai government's efforts to support the local economy, as it seeks to enhance local digital platforms to compete with major foreign companies. In this context, Mora Koot Yipin Tsui, CEO of Yip In Tsui, emphasized the importance of government support for local digital platforms, noting that it will enable them to compete more effectively with foreign firms.
The significance of these programs is increasing amid the challenging economic conditions faced by merchants, as companies strive to provide innovative solutions to support them. These initiatives also reflect a shift in corporate strategy towards enhancing collaboration with the government and local communities.
Impact & Consequences
These initiatives represent a positive step towards strengthening the local economy, as they provide merchants with the opportunity to access a broad user base. Furthermore, the reduction in administrative fees and increased advertising visibility can contribute to improving the performance of small and medium-sized enterprises, enhancing their competitive capabilities.
Moreover, these programs may lead to an increase in demand for food delivery services, positively impacting the economy as a whole. These steps could also encourage more companies to innovate and offer new services that meet market needs.
Regional Significance
Thailand's experience in supporting local digital platforms serves as a model that can be emulated in Arab countries, where many nations face similar challenges in promoting the digital economy. These initiatives could inspire Arab nations to develop similar strategies to support local businesses and enhance innovation.
In light of the global shift towards digitization, strengthening local platforms can contribute to improving the competitiveness of Arab countries in the global market.