Foodpanda insists riders can earn more through new payment scheme

Under Foodpanda's new payment scheme, riders are no longer paid by the hour. — Picture courtesy of foodpanda
Under Foodpanda's new payment scheme, riders are no longer paid by the hour. — Picture courtesy of foodpanda

KUALA LUMPUR, Oct 7 — Online food delivery company Foodpanda today urged its riders to have faith in the new payment scheme, which it says will benefit those who are hard-working.

FMT reported Foodpanda managing director Sayantan Das as saying the food delivery company has decided to stick with its current scheme moving forward, with riders able to earn as much as 50 per cent more, according to data it collected since its implementation on Sept 30.

Under the previous scheme, riders only earned RM4 per hour of work with additional earnings based on every delivery order that they make. This can range from RM3 to RM5 depending on how many deliveries they make in a day.

Under the new scheme, riders will no longer be paid by the hour.

Instead, they will be paid based on the number of orders they take, which has been increased between RM4.50 to RM7. Those who’ve completed 40 hours a week will get an incentive of RM150 and for any orders between 11pm and 9am they get RM1.

“The new payment scheme works on an efficiency model where riders who do more deliveries earn more,” Sayantan told reporters during a press conference today.

This new payment system impacts riders outside the Klang Valley, but riders everywhere participated in a protest in solidarity with their colleagues, refusing to pick up and deliver orders on the mobile app.

They’ve also met with youth minister Syed Saddiq Syed Abdul Rahman to air their grievances.

Syed said the Cabinet has urged Foodpanda to reinstate its original payment scheme to ensure the welfare of their riders. Sayantan, however, said the decision to stick with the current scheme was a private one without government influence.

He also said the protestors comprised only a small group of riders.

“We have studied and understood what segment of the riders actually initiated the strike, less than one per cent of our fleet.

“In terms of true effects on the business, it is negligible,” said Sayantan.

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