foodpanda vendors boycott the platform due to exorbitant hidden fees

Since food delivery services started to gain momentum in the country, Malaysians have witnessed how foodpanda has grown to become one of the most recognisable brands locally. But the pink panda is coming under fire again this month, after its controversial Indian-themed ad about a week ago, for charging vendors with exorbitant hidden fees and commission.

Vendors share their agony doing business with foodpanda

Vendors boycotting foodpanda due to hidden fees
Vendors urge customers to boycott foodpanda
Image credit: Ivan Wong

On 16th October 2021, netizen Ivan Wong took to Facebook to urge Malaysians to stop ordering food from foodpanda as the platform is exploiting vendors by asking them to pay a hefty amount of fees apart from its 30% commission.

In the post, he says that “vendors will be staging a nationwide protest” to boycott foodpanda services either by completely shutting down the platform or terminating their partnership services with it.

“… the vendor who worked hard in preparing your meal doesn’t get paid for the food you enjoy. Can you imagine that the vendors not only didn’t get their pay but owe money instead to foodpanda?” Wong wrote in his post, telling Malaysians that they are being forced to also mark up their prices to make up for the additional costs.

foodpanda hidden fees
Image credit: Ivan Wong

Wong’s viral post, which has garnered over 10,000 shares and more than 3,000 reactions at the time of writing, has a compilation of more than 70 screenshots of Facebook posts and pictures of invoices from foodpanda vendors who claim that they are being charged a hidden fee which results in a zero return of sales.

This hidden fee is stated as “Fees and Adjustments” on their invoice and upon deducting this amount and the 30% commission, the total amount to be paid comes to a negative figure. This means that vendors should pay the remaining amount to foodpanda.

Ivan's conversation with foodpanda
Wong’s conversation with foodpanda asking for clarifications on billing and payment
Image credit: Ivan Wong

foodpanda is currently facing a heavy blacklash from vendors who are urging customers in Malaysia to stop ordering food from the platform. One particular comment on Wong’s post, which is believed to be from foodpanda, said that their platform works differently from their competitor sites and comparisons shouldn’t be made.

Regardless, these vendors are in agreement that other delivery platforms such as Grab have better and more efficient systems with fewer payment issues. Vendors are now liaising with foodpanda in hopes of resolving the issue, knowing that their move to leave the platform will also affect its riders.

Foodpanda seller giving termination notice
Termination request submitted by a vendor
Image credit: Ivan Wong

foodpanda vendors say platform has exorbitant hidden fees

It’s shocking to see foodpanda vendors being allegedly issued invoices that require them to pay a hefty amount of hidden fees. The Smart Local Malaysia reached out to foodpanda, and they replied to us with a statement clarifying that they will revise their wastage policy.

We hope that in the meantime, the boycott will have a minimal effect on the platform’s riders.

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Cover image adapted from: FOOD PANDA Malaysia and Ivan Wong

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