Except for Klang Valley, Foodpanda riders to go on strike next week

Foodpanda delivery riders outside the Klang Valley are planning to go on strike next week over a new pay scheme which they claim will decrease their earnings despite the company saying otherwise.

The strike is expected to start on Monday when the new payment scheme comes into force.

A rider who spoke to Malaysiakini on the condition of anonymity claimed that in Johor, Malacca and Negeri Sembilan, the strike would last for three days.

"Foodpanda will suffer losses. The strike will have a really big impact," he said, adding that a strike would also likely hit Perak. 

And while the new payment scheme only affects Foodpanda riders outside of the Klang Valley, he believed the region would not be immune.

Oriental Daily, meanwhile, reported that the riders in Penang are planning to go on strike for an entire week beginning Monday.

Last night, protests by riders were reported at Foodpanda's regional offices in Johor Bahru (photos) and Penang.

At present, Foodpanda riders are paid RM4 per hour and earn additional income for every order. The per-order payment ranges from RM3 to RM5 based on the rider's performance.

The new scheme would do away with the hourly pay and instead see an increase in the payments for every order ranging between RM4.50 and RM7.

“This system ensures that riders who want to work more have a high volume of deliveries available to them and vice-versa," Foodpanda managing director Sayantan Das said according to Bernama.

"As riders work with Foodpanda on a freelance basis, the revised scheme enables them to earn more income based on the orders they accept," he added.

Das said there was also an RM100 bonus for riders who completed 60 hours a week and an extra RM1 per order for deliveries accepted between 11 pm and 9 am.

There was also an added bonus for those who completed 80 deliveries during their first week.

Foodpanda calculated that if a top tier rider completed three deliveries an hour and worked 30 hours a week, they could earn RM630 per week.

In that respect, the new pay scheme does pay out more per order compared to the current rate.

However, Oriental Daily reported that riders have complained of waiting two to three hours without receiving any orders.

"This means they could not earn their delivery fee. So under the new scheme, the riders’ income will be reduced.

“In comparison, the status quo provides a pay of RM4 per hour, providing them with a basic income even if they do not receive any orders,” the Chinese daily reported. - Mkini