Foodpanda stands by new wage scheme, tells govt not to interfere

SM Amin SM Amin Updated 4 years ago · Published on 7 Oct 2019 1:36PM · 5 Comments

Foodpanda managing director Sayantan Das says the company's new wage mechanism can help increase riders' income. – The Malaysian Insight pic by Najjua Zulkefli, October 7, 2019.

FOODPANDA will stick to its new wage mechanism despite Putrajaya’s call for it to reinstate the previous payment scheme.

Managing director Sayantan Das said Foodpanda welcomes the government’s concerns, but the food-delivery firm must make a decision that is sustainable for its operations and riders.

The new mechanism was drawn up based on data the company received, and can help increase riders’ income, he said.

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

The new scheme, which increases payments per delivery, replaces a system of fixed hourly payments.

Riders now get paid between RM4.50 and RM7 per delivery, an increase of RM3 to RM5 from what they got previously. The RM4-per-hour wage, meanwhile, is done away with.

Foodpanda is also offering an incentive of RM100 if they work 60 hours a week, and an extra RM1 per order for all orders placed between 11pm and 9am.

Sayantan said the firm will enforce the new system for at least four weeks before deciding whether a review is necessary.

On the protest staged by riders recently, he said only some are unhappy with the change in payment scheme.

“The protest was carried out by a small group of riders. Operations are going on as usual. There has been no negative impact.

“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 gave an assurance that the new mechanism will allow riders to get at least one order an hour.

On September 30, Foodpanda deliverymen in several states went on strike to oppose the change to the payment system.

The new scheme is applicable only to riders outside the Klang Valley, but those in the Klang Valley, too, participated in the protest in a show of solidarity. – October 7, 2019.

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Comments

  • Good on you. Stand up to the clueless kid Minister.

    Posted 4 years ago by Elyse Gim · Reply

  • Simple calculations will show if a rider work a minimum 40 hours, they still get 150/40 = rm3.75 per hour, while fee per delivery has increased, so those who commit to minimum 40 hours are unlikely to make less, this seems like a scheme designed to reward riders for performance as well as to encourage fulltime riders.

    Posted 4 years ago by A Subscriber · Reply

  • this new malaysia? govt got much much much bigger issue to solve...focus lah

    Posted 4 years ago by . . · Reply

  • Its time the private sector spoke up to inexperienced ministers who dont know a clue of how businesses work.
    All ministers should be required to attend Basic Business 101 that can be conducted at any of the public universities for a small fee. Public Universities today also need to be business savvy and make money.

    Posted 4 years ago by Kampung Boy · Reply

  • Let the private sector decide what is best for their operations they are not a charitable organization and need to look after their revenue and expenses. Is the government going to reimburse them if they make losses? Stop being nosy you have better things to do. Period.

    Posted 4 years ago by Justin Leno · Reply