Shutters down for Dabao.sg as costs and losses go up
POPULAR local food-delivery pioneer Dabao.sg has sent out its last order.
As of June 12, the company has ceased operations, citing the "unrelenting escalating costs of rental, food and petrol" as its reasons.
The closure was announced via the website and comes less than two months after reports of an increase in Dabao. sg's minimum order.
The company, opened in January 2006 by two friends, Mr Max Lim, 30, and Mr Luke Ng, 31, delivered local fare from well-known hawker stalls.
In the announcement, the owners expressed their "grateful thanks" to all customers for their support and stated that they were "no longer able to run at a loss". However, they could not be reached for comment. Dabao.sg is the latest casualty of soaring food and fuel prices.
Just last Tuesday, the Government announced that compared to May last year, food prices jumped 9 per cent due to costlier cooked food, rice and other products.
Aside from Dabao.sg and big names like McDonald's, KFC and Pizza Hut, there are at least 10 independent food-delivery operators here offering various types of cuisines.
Dabao.sg patrons my paper spoke to said that it was a pity the company has closed, but were not surprised, given the rising costs.
Customer Joanna Cheng, 21, said "the wide variety to choose from on their menu was always a plus" but added that "it was quite expensive".
Other operators admit to feeling the pinch and have raised either their menu prices, delivery charges or both.
Mr Andy Kwan, 26, manager of Express Food Delivery, said their prices have gone up by "about 15 per cent, although delivery charges remain the same".
Fried chicken chain Arnold's had raised its charges for delivery by a dollar while keeping its minimum order at a constant, said The Straits Times in May.
Ponggol Seafood Restaurant has reportedly maintained its no-cost delivery while upping prices for certain items on its menu.
