Foodpanda defends new payment scheme for riders

Foodpanda says it will stick with its new payment scheme for riders despite protests from some quarters.

KUALA LUMPUR: Foodpanda today sought to reassure its drivers that they stand to benefit from the new payment scheme which has seen hundreds up in arms over fears that it will reduce their income.

Foodpanda Malaysia managing director Sayantan Das said 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.

“Based on data, we are confident that the changes made are for the better,” he said.

“Moving forward, we will be sticking with the scheme while monitoring to fully understand the impact on our rider fleet before taking the next course of action.”

Under the new scheme, riders are entitled to an incentive of RM150 upon completing 40 hours a week. They will also receive RM1 per order for all orders between 11pm and 9am.

So far, the new scheme has only been implemented outside of the Klang Valley.

Sayantan said riders would no longer need to work long hours, as the new scheme correlates to the number of orders delivered per hour.

“The new payment scheme works on an efficiency model where riders who do more deliveries earn more,” he added.

He also said the decision to stick with the new scheme was a private one that had been made without government influence.

The Cabinet previously urged Foodpanda to revert to its old payment scheme following protests from riders.

But Sayantan said the protests were initiated and carried out by only a small segment of riders.

“We have studied and understand what segment of the riders actually initiated the strike – less than 1% of our fleet.

“In terms of true effects on the business, it is negligible,” he added.