foodpanda HK insists no reductions on overall service fee amidst couriers' strike

Food delivery platform foodpanda Hong Kong has insisted that it has not reduced the investment in the overall service fee for its couriers, after some of its employees went on a second strike in two weeks over wage cut issues.

This comes as over a thousand of foodpanda couriers went on strike in Hong Kong over a new mapping system on 15 and 16 October 2022, which they claimed the food delivery platform has proposed to reduce distance fees for delivery workers.

The self-employed drivers who went on strike demanded fair pay from the company and support for the company’s couriers. “The company had provided compensations for parking tickets and labour insurance before the pandemic. However, it’s no longer the case now...it’s even worse than Meituan, which has offered independent insurance for each delivery courier. We want respect and support to our drivers,” the spokesperson of the strike explained.

In response to the incident, foodpanda HK told MARKETING-INTERACTIVE that it has not reduced its investment into the overall service fee. “The minimum base compensation component has remained unchanged for all zones and all vehicle types since November last year. None of our initiatives were launched with the intention to reduce overall service fees,” the statement read.

After the launch of the new Google Maps function, it has increased its investment into distance service fees by 17%. “On average, the fleet receives higher service fees for all zones and all vehicle types, while 66% of orders are being paid more, especially long-distance orders. We are aware of certain bugs that need to be fixed within our system and are continuously working on system improvements to address these issues. Until then, we have been proactively paying out relevant adjustments to the affected couriers,” the statement added.

Meanwhile, the company said it has set up various official channels to maintain close communication with the fleet, including its head of logistics who has personally visited pandamart stores across Hong Kong to collect feedback from couriers. “Unfortunately, it is our understanding that they did not apply to any of the slots from our official meetings that have been purposefully set up for constructive and regular discussions. We sincerely hope that a constructive meeting would have happened for us to address their concerns before engaging in a demonstration,” the company said.

The food delivery platform also said it has received reports that some couriers have deliberately destroyed customers’ orders and prevented other couriers from completing orders and accepting shifts. While it respects everyone’s right to express themselves in their own way, it said it does not support and will not tolerate any action that intentionally disrupts other couriers from attending their shifts or delivering their orders under any circumstances.

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