Noon is launching its own food delivery platform with “dramatically fair commission”, as Mohamed Alabbar says he “will not allow food operators to be held to ransom”.
In a webinar revealing the new platform, Alabbar questioned how restaurants are supposed to survive while paying 30-35 percent commission to current aggregators such as Deliveroo and Zomato.
Alabbar said: “We will not accept anyone abusing us and abusing you. It [the Noon delivery platform] will be on a level playing field. 30 percent and 35 percent commission is way out of line.”
The new platform, called Noon Food, will be part of the main Noon app, with a food delivery marketplace and Alabbar promised restaurants access to Noon’s millions of customers
Faraz Khalid from Noon unveiled more details about the new platform, saying that it will cap commission on its white label app personalised for restaurants at just five percent, for a minimum of two years.
“You will never be higher than five percent,” said Khalid. “We will get less but we’ll pass on the benefits to you.”
Noon Food is being built around five key pillars explained Khalid. Dramatically fair commission locked for two years, meanginful exclusivity benefits, zero lock-in, a promise that Noon will not build any dark kitchens, and restaurants will have full access to their data from the app.
Expanding on the zero lock-in pullar, Khalid said that Noon will not hold restaurants to long term commitments. “If we’re not able to serve you well, you are free to walk out. We hear a lot of pain in the industry where people are held back by extremely onerous clauses. Noon will not do that.”
Alabbar said that Noon may not look to make any money at all from the venture, saying if it is possible they will try and reduce commission further for restaurants but will be open and transparent with any changes made in the future.
There will be a number of options available for F&B outlets who join Noon Food, with merchant sign up commencing today, including the full white label app with commission capped at 5%, or the ability to join the Noon Food marketplace which will have a different fee structure.
No date has been given for the launch of the new app, but Alabbar said the Noon team is working on it night and day and it’s expected to launch soon in cities including Dubai, Abu Dhabi, Riyadh, Jeddah, and more.