Cabinet suggests Foodpanda revert to original payment scheme, says Syed Saddiq

PETALING JAYA: The Cabinet suggests that Foodpanda revert to the original payment scheme for its delivery riders, says Youth and Sports Minister Syed Saddiq Syed Abdul Rahman (pic).

Following a dialogue with the riders held at his residence on Tuesday (Oct 1) night and a meeting with the Foodpanda management before that, Syed Saddiq then went on to raise the matter in a Cabinet meeting Wednesday (Oct 2).

“After hearing the story from both sides, I brought the issue to the Cabinet today.

“The government believes in free market competition but it cannot be at the expense of the workers.

“The Cabinet recommends Foodpanda return to the original payment scheme in order to guarantee the riders’ welfare, ” he said in a statement Wednesday.

Syed Saddiq said Foodpanda claimed it has a large control of the market and that most of the riders, except those in Johor, had agreed to the implementation of the new payment scheme.

However, this was not accurate as riders from Penang and Negri Sembilan also protested against Foodpanda’s new payment scheme, said Syed Saddiq.

“The government will find a way to ensure a more competitive market for the sector players especially when there is a party claiming that they control the market, ” he said.

For the long-term plan, the Cabinet has also decided that the Youth and Sports Ministry together with the Human Resources Ministry and the Domestic Trade and Consumer Affairs Ministry to form a special committee to look into the issue of the gig economy, he said.

“There are many young people who work as riders either on a full time or part time basis.

“They must receive comprehensive protection in order to increase their income.

“We must be responsible in ensuring that their future is secured, ” he added.

On Monday (Sept 30), more than 200 Foodpanda delivery riders staged a strike against the new payment scheme, urging the company to revert to the original plan.

The riders claimed that the new scheme stops paying riders per hour and instead increases their pay for every order from RM4.50 to RM7.