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● B'desh to bring Riyadh attack victims’ bodies home at state expense ● Foodpanda faces multi-front backlash over commissions and rider pay ● 1,200 tourists leave Sajek under special escort amid road blockade ● Houthis issue warning against use of Saudi airports ● State Minister urges India to renew Farakka pact with guarantee clause ● Pakistan imposes emergency rule in Khyber Pakhtunkhwa ● Four arrested on sedition charges for defacing Tagore mural

Foodpanda faces multi-front backlash over commissions and rider pay

Published : Sunday, 11 October, 2026 at 4:07 PM

Observer Special Report

Popular online food and delivery platform Foodpanda is facing mounting criticism as riders, restaurant owners, and consumers express deep dissatisfaction over compensation structures, high commissions, delivery delays, and refund hurdles, while senior executives face legal proceedings.

Riders Allege Sub-par Earnings Despite Heavy Workload

https://observerbd.com/news/598404

Delivery riders associated with Foodpanda report that securing expected earnings has become increasingly difficult despite working long hours. They claim that after deducting fuel or maintenance expenses, mobile data charges, and vehicle upkeep from daily gross earnings, little net income remains.

A primary driver of discontent includes low delivery fees relative to distance and traffic, alongside stringent conditions required to qualify for incentives. Riders note that navigating severe traffic jams, enduring long wait times at restaurants, and managing multiple orders simultaneously fail to translate into adequate financial returns.

Systemic Penalties and Traffic Traffic Inflexibility

Beyond basic pay, riders express frustration over penalty mechanisms and account suspensions. They allege that disciplinary measures are routinely enforced following order cancellations, delays, or customer complaints without impartial verification.

Riders emphasize that severe road congestion, kitchen delays at vendor outlets, and inaccurate customer addresses fall entirely outside their control. They argue that platforms should establish fair dispute mechanisms and hear rider perspectives before imposing fines or account freezes.

Safety Concerns and Healthcare Costs

Riders highlight significant financial insecurity in cases of road accidents or sudden illness while performing duties under harsh weather and hazardous traffic conditions.

Accidents not only incur immediate medical expenses but also result in lost daily wages during recovery. Consequently, riders are demanding safety nets, including accident insurance, emergency assistance, revised distance-based pay scales, and transparent grievance redressal.

Escalating Commission Charges Strain Restaurant Operations

Restaurant owners represent another major front of dissatisfaction, citing unsustainably high commission rates and auxiliary platform fees. Operators report that while order volumes via online channels may increase, net profit margins are severely eroded by platform commissions, advertising fees, and promotional expenditures.

Small and medium-sized enterprises (SMEs) face particular strain balancing rising raw material costs, staff salaries, packaging, and utility bills alongside platform charges. Restaurant owners also allege that participating in platform-driven discount campaigns and sponsored visibility adds financial pressure without yielding promised profit margins.

Operational Strike Threat in Chittagong

In response to unaddressed financial grievances, the Chittagong Metropolitan branch of the Bangladesh Restaurant Owners' Association announced plans to suspend Foodpanda operations across the port city.

The association initially instructed member establishments to shut down Foodpanda order acceptance devices from October 6, citing a lack of resolution to written demands. During a press conference in Muradpur on October 10, restaurant owners issued a seven-day deadline for Foodpanda to address commission structures, billing transparency, and cancellation compensation, warning of stricter enforcement if demands remain unmet.

Foodpanda management stated that it maintains direct contracts with restaurant partners and remains open to constructive dialogue. The company cautioned that service suspensions could negatively impact vendor sales, rider incomes, and consumer convenience.

Consumer Complaints over Delays, Incorrect Orders, and Refunds

Consumers have similarly voiced growing frustration regarding delayed deliveries, incorrect or missing items, order cancellations, and delayed refund processing.

Customers report significant gaps between estimated arrival times displayed on the mobile application and actual delivery times, often leading to cold food.

While Foodpanda attributes delays to traffic, weather, or multi-order routing, consumers complain about delayed response times from customer support. Issues regarding refund turnaround times for cancelled or incomplete orders also remain a key point of friction.

Consumer complaints against the platform reached the Directorate of National Consumer Rights Protection (DNCRP), which convened a formal meeting with representatives from Foodpanda and Daraz in February 2026.

The directorate emphasized enforcing robust customer complaint mechanisms, ensuring timely delivery, and mandating prompt refunds when services fail to meet stipulated terms. Despite these regulatory interventions, consumers continue to press for more responsive dispute resolution.

Arrest Warrants Issued for Top Five Executives

Compounding operational challenges, legal actions against five top Foodpanda executives have come to light following arrest warrants issued by a Dhaka court on September 23 in connection with two separate financial dispute cases.

The warrants name Foodpanda Bangladesh Managing Director Syeda Ambareen Reza, Co-founder and Director Zubair Siddiqui, Pandamart Director Md. Tabrez Khan, Head of Category Dilara Farooq, and Senior Manager Mohammad Sajedul Huq.

The lawsuits, filed by Shihab Mahmud Bashir, owner of vendor firm 'Protein & Perishable', allege embezzlement amounting to approximately Tk 3.8 crore involving unpaid vendor invoices for Pandamart supplies, fraudulent return invoices, and unauthorized deductions.

Delivery Hero Stores (Bangladesh), a subsidiary of Foodpanda's parent company, rejected the criminal claims, stating the matter constitutes a commercial dispute. The company confirmed that the executives involved have secured anticipatory bail from the High Court.

Allegations mount against Foodpanda

-SA