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LINE MAN warns TCCT GP ceiling draft could delay IPO

LINE MAN warns TCCT GP ceiling draft could delay IPO

Khaosod•Economy•12m ago

Reader Briefing

LINE MAN CEO expresses concern that proposed Trade Competition Commission regulations on GP rates could disrupt market mechanisms and investor confidence.

  • •Yod Chinsupakkul, CEO of LINE MAN Wongnai, opposes the draft regulation merging Food Delivery and Ride-Hailing under one regulatory framework.
  • •LINE MAN holds approximately 47% of the Food Delivery market but remains a small player in the Ride-Hailing market.
  • •The company suggests the government use a maximum price ceiling instead of requiring individual store approval for GP adjustments.
  • •Strict regulations may lead LINE MAN Wongnai to postpone its plans for an Initial Public Offering (IPO).

Overview

  • •Yod Chinsupakkul expresses concern that the Trade Competition Commission draft regulation on GP ceilings will negatively impact market mechanisms.
  • •Yod Chinsupakkul argues that Food Delivery and Ride-Hailing have different business structures and stakeholders and should not be regulated under the same framework.
  • •LINE MAN holds a market share of approximately 47% in the Food Delivery market but is a small player in the Ride-Hailing market.
  • •Yod Chinsupakkul states that requiring 180-day advance approval for GP increases is inconsistent with the dynamic nature of technology platform costs.
  • •Yod Chinsupakkul proposes that the government implement a maximum price ceiling rather than a per-store approval process to maintain flexibility.
  • •Strict or unfriendly regulations may cause LINE MAN Wongnai to delay its IPO plans due to concerns over growth and competition.
  • •LINE MAN Wongnai is assessing other risks including cybersecurity, AI, political stability, and national economic trends.

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Key Quotes

Yod Chinsupakkul
"If the regulations are too strict, unfriendly to business, and affect growth potential or competition, there is a chance we may have to consider delaying the IPO plan."
หากกฎเกณฑ์ที่ออกมามีความเข้มงวดเกินไปจนไม่เป็นมิตรต่อการทำธุรกิจ และกระทบต่อศักยภาพการเติบโตหรือการแข่งขัน ก็มีโอกาสที่เราอาจต้องพิจารณาชะลอแผนการ IPO ออกไปก่อน

Key Entities

Person

Yod Chinsupakkul(ยอด ชินสุภัคกุล)
Chief Executive Officer of LINE MAN Wongnai.

Organization

LINE MAN Wongnaiℹ️
A ride-hailing and food delivery platform provider.
Trade Competition Commission(คณะกรรมการการแข่งขันทางการค้า)ℹ️
The government body preparing a draft announcement to regulate GP service fee structures.
Grab
A player in both the food delivery and ride-hailing markets.
ShopeeFood
A player in the food delivery market.
Robinhood
A player in the food delivery market.
Bolt
A player in the ride-hailing market.
inDriveℹ️
A player in the ride-hailing market.
Maxim
A player in the ride-hailing market.

Policy

Trade Competition Commission Draft Announcement(ร่างประกาศคณะกรรมการการแข่งขันทางการค้า)
A draft regulation aimed at overseeing the service fee structures (GP) of ride-hailing and food delivery platforms.