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More than 100 Foodpanda riders protest over low wages at company headquarters

New Google Maps-based system forces riders to make more deliveries to make ends meet

10:40 PM MYT

 

KUALA LUMPUR – More than 100 Foodpanda riders staged a protest at the company’s headquarters here to express their frustration over low wage rates since the introduction of a new payment system based on Google Maps.

Rider Ridhwan Halim, 29, told Scoop that the current wage rates do not correspond with the longer distances they need to cover when making deliveries.

“I am from Puncak Alam, and my area is relatively small. But now Foodpanda has opened up my delivery route to other zones such as Subang.

“Unfortunately, as the distance increases, the pay does not, and we are forced to decline orders. If we were to decline two or three orders, we will be penalised,” he said when met at Foodpanda’s headquarters in Jalan Chan Sow Lin, here today. 

Ridhwan, who has been working as a rider for three years, said this is the first time he has experienced this, and the wage rates have been an issue for over a month with no explanation from the company. 

“Previously, I only needed to make 15 deliveries to earn RM100 a day, but now I have to make up to 20 deliveries just to maintain that level of income.”

He added that Foodpanda’s use of Google Maps has significantly affected their payment structure. 

“Before, every 1-km, we were paid around RM1, but now riders receive as little as 30 sen.”

A rider from Putra Heights, Khairul Fitri, 34, said that even though some customers would tip, Foodpanda would take a cut. 

“For example, a typical order would be charged a delivery fee of RM5. If the customer tips us, Foodpanda would deduct it from us despite the customer’s intention to give us more,” he said. 

Foodpanda later clarified that 100% of the tips go directly to the riders.

27062024-Datuk-Seri-Mohd-Sharkar-Shamsudin-bersama-Puluhan-‘rider-Food-Panda-berkumpul-di-HQ-Food-Panda-AZIM-RAHMAN-2
In response to the complaints, Datuk Seri Sharkar Shamsudin of PPRPM said riders will receive at least RM10 to RM12 per hour, in addition to reviewing flaws in Foodpanda’s system. – Azim Rahman/Scoop pic, June 27, 2024

In addition, Umno’s Datuk Seri Sharkar Shamsudin, who represented Persatuan Perpaduan Rakan Penghantar Malaysia (PPRPM), said Foodpanda will conduct a study within a month to identify weaknesses in the current system. 

He added that the current system has been implemented in Kelantan, Terengganu, Pahang, and Johor, with Klang Valley being the latest addition. 

He assured that riders will receive at least RM10 to RM12 per hour, in addition to reviewing the flaws in the system.

“They propose a first delivery rate within a 5-km radius at RM7, RM6 for the second batch, and RM5 for the third batch. For distances exceeding 5-km, they suggested an additional RM1 for the first batch, 80 sen for the second batch, and 50 sen for subsequent batches.” – June 27, 2024

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