Bags ready, but no one to deliver: rider exodus at GrabFood, foodpanda

Malaysian restaurateurs are bearing the brunt of riders opting out of delivery platforms in Malaysia. Riders say they're leaving because platforms are docking their incentives. And platforms need to watch out for new and eager players like airasia food happy to hire the riders they lose

Since March, consumers and merchants have been experiencing higher order cancellation rates due to driver shortage

A chunk of riders have decided to leave the big platforms due to fare reduction and better offers from other logistics platforms

Teleport, the logistics arm of AirAsia Group, is ramping up its recruitment on delivery partners to boost its food delivery business

But merchants are hit, as dine-in is disallowed since Malaysia entered another month-long nationwide lockdown on 12 May

Have you had a food delivery platform call you to tell you your order has been delayed or that they’re assigning another driver? It’s more common now than you’d think.

Major food delivery platforms in Malaysia have been struggling to meet consumer demand. And it’s not because demand for food delivery is up—it is up, though, thanks to the multiple Movement Control Orders (MCO) banning dine-in—but because supply is down.

Since March, GrabFood and foodpanda have been experiencing a severe shortage of riders. Despite having to pay a 10-35% commission commission The Ken Faustian deal?

AUTHOR

Ka Kay Lum

Based in Kuala Lumpur, Ka Kay covers investment activities, aka following the money, across Southeast Asia and in-depth stories on the often-overlooked Malaysian startup ecosystem. She was previously a regional writer for Nikkei-owned DealStreetAsia.

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