Line Man CEO Warns Draft Fee Rules Could Delay IPO
Line Man Wongnai CEO Yod Chinsupakul warns that draft Trade Competition Commission regulations on service fees for ride-hailing and food delivery platforms could disrupt market mechanisms and force the company to delay its IPO. He criticizes the draft for combining two distinct markets, requiring impractical 180-day advance approval for price changes, and using unverified market share data. Yod proposes a price ceiling approach instead of per-merchant approval to balance consumer protection with operational flexibility.
Line Man Wongnai CEO Yod Chinsupakul has expressed concern over a draft notification from the Trade Competition Commission (TCC) that would regulate service fee (GP) structures and business conditions for ride-hailing and food delivery platforms. The company worries about the regulatory approach, particularly market definition, pre-approval of service rates, and the impact on industry competition and investor confidence as it considers an IPO.
The first issue is market definition. The draft combines food delivery and ride-hailing under a single regulatory framework despite their distinctly different business structures, stakeholders, and players. Food delivery's main players are Line Man, Grab, ShopeeFood, and Robinhood, while ride-hailing includes Grab, Bolt, Line Man, inDrive, and Maxim. Line Man holds about 47% of food delivery but remains a minor player in ride-hailing. Merging market share data from both sectors to determine market dominance could create confusion about which market the state intends to regulate.
The company also questions the source of market share data used by the TCC, noting that operators were not directly consulted and had no opportunity to clarify facts. Yod urges the government to hear from the business sector comprehensively before setting guidelines.
On price control, the draft requires platforms to seek approval at least 180 days in advance for any GP increase. Yod argues this is incompatible with platform businesses where costs and demand fluctuate constantly due to weather, peak hours, and supply-demand dynamics affecting rider earnings and service costs. Platforms connect three parties — consumers, merchants, and riders — so controlling prices on one side creates a chain reaction affecting the others.
Yod proposes a price ceiling framework instead of per-merchant approval, which would be impractical given hundreds of thousands of merchants. A ceiling would allow the state to oversee competition and protect consumers while giving platforms flexibility to manage costs and price according to market conditions.
Regarding the legal environment, Yod acknowledges regulatory risk as a key business risk. "Every country must balance regulation and innovation support. If rules are too strict and business-unfriendly, affecting growth potential or competition, we may have to consider delaying our IPO plans," he said.
