KUALA LUMPUR – Long working hours and cut-throat remuneration structure have been a bane for food delivery riders recently with some considering to leave their current service platform for another – or find a new job altogether.
The pay structure where performance is valued from batch one to six has frustrated Foodpanda riders here, who are finding it tougher to bring in liveable wages.
Speaking to Scoop, Mohd Khairul Affendy has been unhappy over the low rider fees that do not align with the distance he has to cover to deliver food orders.
“It’s frustrating that I earn very little from my rider fees despite travelling to many places to deliver orders. I feel it is unfair as I work the same hours as those in a higher batch, and I get paid less.
“I work for more than 10 hours per day, and it gets even more stressful when I get scolded by customers for delays caused by vendors.
“Due to my lack of income, I also have to take on other jobs, such as delivering for Lalamove, to support my family.
“Since then, I have started to be a bit selective with my shifts at Foodpanda. Nowadays, I tend to decline orders that do not align with my fees as I feel it will be a waste of time and energy to travel far for less.”
The weekly earnings for Foodpanda riders vary based on their batch levels: RM7 per order for batch one, RM6 for batch two, RM5 for batch three, and RM4.50 for batches four, five, and six.
Riders in batch one enjoy the highest weekly income, earning about RM600 after 30 hours, followed by batch two riders with RM500, batch three riders with just above RM400, and batch four, five, and six riders earning a maximum of RM396 per week.
Last year, a large group of Foodpanda riders took part in a 24-hour strike dubbed “Food Delivery Blackout” to protest low fees, and calling for better social security and protection.
As for Shah Rizal Rahman, riders were paid well during the movement control orders where maintenance for his motorcycle was taken care of.
“There were no issues like this in the past as we used to be paid well based on the order and the travel distance.
“Now, we have to take care of our own motorcycle maintenance cost, which can go up to RM100-RM200 every two weeks. I work for more than 12 hours per day, and I tend to ride fast to ensure customers get their orders on time.
“This is so I don’t get any penalties or demotions from my batch. I put my life at risk to deliver orders, and I rely on my own personal insurance.
“I heard that Foodpanda is probably going to be acquired by another company, and I’m just hoping for things to change – especially with rider fees and rider safety,” he added.
Apart from revised fees, Shah feels that the high number of riders in Foodpanda has made it more competitive for the rest to earn a fixed income.
“Three years ago, there were fewer riders. It has become the survival of the fittest as we need to work longer hours to get somewhat close to what we earned years ago.
“I’m currently in batch three and I need to work for 60 hours per week to reach batch one.
“I think Foodpanda should introduce a fixed income to all riders where fees are paid at the same level to ensure that there’s no jealousy and disunity among us.”
Meanwhile, Muhammad Aizat Che Desa advocates for an upgrade in the Foodpanda application system where riders like himself can have a direct conversation with customer service support to protect themselves from unfair evaluations.
“Sometimes, customers don’t know that the fault is on the vendors for delaying their food and the packaging of their food, and they tend to blame the riders for the mistakes by complaining to customer support.
“Because of this, we tend to get demoted and have to face penalties because of the customer’s complaints, which most of the time are not even our fault. We want the company to listen to us and back us up.”
Since January 2023, according to the Employment Act, the official regular work hours in Malaysia are eight hours daily and 45 hours per week.
On the flip side, Grabfood riders stand out as more content and satisfied even though there is a rigorous evaluation system in place.
Speaking to Scoop, Noor Amalina shared her positive experience, highlighting the substantial improvement in her monthly income since joining Grabfood a couple of years ago, as opposed to her previous stint with Foodpanda.
“Being a rider for Grab has been good. I now have a fixed-rate income, which is a marked improvement from my past experiences with other food delivery platforms.
“I also have the flexibility to choose my shifts and work on a part-time basis. The company’s four-tiered ranking system simplifies the pay structure, making it easy to understand.
“I no longer feel compelled to work long hours in fear of dropping to a lower payment level, and there are no restrictive limits on my working hours.”
She added that her only concern is the occasional discrepancy in travel fares for longer distances (50 sen per additional km), especially during heavy rain.
Another rider Mustaffa Kamal echoed her sentiments, emphasising the positive impact of Grab’s comprehensive benefits package on his motivation to extend his working hours.
“Over the past three years as a Grabfood rider, the benefits offered surpass those from my previous employment. The company takes care of my insurance, the Employees’ Provident Fund (EPF) and Social Security Organisation (Socso) contributions.
“The extra incentives in the form of food and medical vouchers serve as a motivational boost for me to put in extra effort.
“The fixed rider fare system has allowed me to comfortably work for 10 hours a day, resulting in a monthly income of approximately RM3,000.
“This is a significant improvement compared to when I was working for other platforms.”
As for rider Mohd Shafiq Abdullah, he expressed appreciation for the benefits provided by Grab, particularly the free motorcycle maintenance.
“The rider’s fare is consistently fair and equitable. I’m happy with the free motorcycle maintenance fee, considering the hours I put into my work.”
Meanwhile, Muhammad Syafiq Zaki, while content with his income and company benefits, shed light on the challenges associated with maintaining a coveted ranking within Grab’s system.
“The ranking system adds a layer of complexity to our work dynamics. It’s a real challenge to preserve our rank, as it directly impacts the benefits we receive.
“Currently holding rank two, losing it would mean forfeiting the flexibility to choose my working shifts, which is crucial for me. Maintaining a low cancellation percentage, under 4% is imperative.
“It takes a minimum of three months to improve from rank four to rank one, requiring completion of 30 orders per day. Striking this balance is essential to safeguard my income and work preferences.”
Foodpanda has been contacted and is expected to issue a statement on the matter.
Last February, the Statistics Department revealed that 98% of delivery riders were aged 15 to 30, with almost half of them having only a secondary school certificate.
It also found that 74% of the riders considered the job as their main source of income, with about 27% earning between RM1,501 and RM2,499, and 12% getting between RM2,500 and RM3,170 monthly.
Only 72% of respondents contributed to Socso while 22% contributed to EPF.
It also found that more than 60% of the delivery riders do not have any savings while around 55% of them have no personal accident or life insurance policies. – January 4, 2024