Taiwan's Food Delivery Act to Launch Amid Industry Concerns and Recommendations

Taiwan's Food Delivery Service Act, set to officially launch on July 21, marks a new phase in the management of delivery platforms. The Digital Platform Economy Association (DEAT) has put forth three key recommendations to ensure a smooth transition and effective implementation of the new regulations. These include establishing a regular, cross-ministerial review mechanism every six months, basing policy decisions on empirical data, and implementing a six-month grace period to help the industry adapt.

DEAT emphasizes the need for ongoing dialogue and adjustments to accommodate the rapidly evolving delivery sector. The association stressed that the act's intent is to protect delivery workers' rights while ensuring the industry's sustainable growth. They advocate for a governance framework that balances worker protections with the industry's operational realities, urging the government to continuously collect feedback and data to refine the regulations.

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The regulatory framework should aim to maintain the balance of the multi-party ecosystem involving consumers, delivery personnel, merchants, and platforms.

Experts participating in DEAT's discussions have identified five potential structural impacts of the new law. These include increased platform operating costs, potential fragmentation of delivery capacity due to separate pricing for bundled orders, and a possible shift towards premium or higher-barrier services as prices adjust. Concerns were also raised about market price mechanisms and competition law, with experts suggesting that market-driven price adjustments, rather than direct administrative controls, are more conducive to long-term development. International experience suggests that price controls alone may not significantly boost delivery workers' earnings if increased competition dilutes order volume.

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If multiple orders that are on the same route are still charged separately, it will weaken the economic benefits of shared delivery, similar to three passengers taking the same taxi but having to pay the full fare separately, which not only increases overall transaction costs but may also reduce the operational efficiency of the logistics system.