NTUC Service fee, delivery charge promote transparent pricing
We thank Mr Manish Agarwal for his feedback (Why the service charge?, Oct 9).

The service fee covers a portion of the total cost of processing, picking and packing online grocery orders.

This fee of $3.99 is a subsidised rate considering the costs involved in processing grocery products which involve cold chain management, transportation for bulk goods, manpower and stringent food safety and quality measures.

We included the service fee and delivery charges to be transparent in markups as our online platform maintains uniform prices with our brick-and-mortar stores.

The prices of products seen on FairPrice Online are what customers also enjoy at neighbourhood FairPrice stores located island wide.

The introduction of the service fee was announced earlier this year following efforts to ramp up our online grocery capacity by investing heavily in our online infrastructure and extensive hiring of manpower to ensure our online grocery service remains available for as many customers as possible.

Jonas Kor
Director, Corporate Communications
NTUC FairPrice

Source: https://www.straitstimes.com/opinion/forum/forum-service-fee-delivery-charge-promote-transparent-pricing

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