NTUC FairPrice, a supermarket chain based in Singapore, is reportedly planning to increase the online capacity by 30% in the next few weeks and reinstate the service fee of online orders. The company has reportedly announced that the S$3.99 service fee will be applied to the online orders starting from Thursday. The service fee was initially introduced at the beginning of March, which was then waived by the company shortly.
According to Seah Kian Peng, CEO of FairPrice, the company assures the customers of no hidden mark-ups on its products as it adopts a transparent pricing approach. The online platform also maintains a uniform price with the brick-and-mortar stores.
Mr. Seah added that the service fee, which can be considered as a subsidized rate, will partially cover the total expenses of processing products including picking, processing, and packing the online orders for groceries. It also involves bulk goods transportation, cold chain management, manpower and stringent food safety & quality measures. The surge in online orders can be attributed to the social distancing guidelines from the governments to contain the spread of coronavirus.
FairPrice will also introduce a multi-tiered fee structure to offer more flexibility to the shoppers. It will enable them to change their basket sizes and optimize savings for online purchases. It is also planning to hire more employees and convert its brick-and-mortar store into a dedicated fulfillment center that involves online orders and other activities. It will also rework on the availability of delivery slots due to the recent hike of visitors on its website.
The company has recently pledged to donate to 5 organizations during the unprecedented coronavirus crisis, namely Food from the Heart, Touch Community Services, Assisi Hospice, Metta Welfare Association, and Lee Ah Mooi Old Age Home. It will match the service fee of S$3.99 for all online orders & donate nearly S$500,000 to these 5 organizations.
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