Foodpanda to continue new payment scheme outside Klang Valley

07 Oct 2019 / 18:07 H.

KUALA LUMPUR: Online food delivery firm Foodpanda will continue with its newly implemented controversial payment scheme outside Klang Valley despite being urged by the government to bring back the previous wage mechanism.

Its managing director, Sayantan Das, said the company, while welcoming the government’s concern over the issue, had to make a decision that is sustainable for its operations and riders.

He said the new payment scheme was introduced based on data the company received, and that the mechanism can help riders to increase their earnings.

“We welcome the narrative, views and efforts to understand market demand, but the company has to act without interference from the government,” Sayantan said in a press conference here today.

“The new scheme would in fact enable performing riders to earn as much as 50% more, according to data collected after its implementation on Sept 30,” he added.

“For example, a rider who previously received RM5 per order would now receive RM7 per order. The new scheme works on an efficiency model, whereby riders who are doing more deliveries would earn more.”

Under the new scheme, riders will get RM7 per order plus RM1 per order for all orders between 11pm and 9am daily.

Also they will get a RM150 bonus upon completing 40 work hours a week and an additional bonus if they complete a minimum of 80 orders each week.

Previously, riders were paid RM4 per hour plus RM3 to RM5 for every delivery made but the quantum is based on their performance.

If they completed at least 60 hours of work a week, they were paid an additional “bonus” of RM100.

Sayantan said the company will continue to implement the mechanism outside Klang Valley for at least another four weeks before they decide whether a review is necessary.

He added that riders would no longer need to work for long hours, as the new scheme correlates to the number of orders delivered per hour.

When commenting on the recent protest by riders, he said the strike was carried out by a small group made up of only one to two per cent from a total of 13,000 riders nationwide.

“We encourage those who disagree with the new scheme to understand its plus points. If they still disagree, they are free to seek employment elsewhere. We are not forcing them to stay with Foodpanda.” he said.

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