Foodpanda in crisis: Mounting complaints, low pay, harsh penalties

Foodpanda is facing mounting allegations over low rider earnings, high restaurant commissions, unfair penalties, customer service failures and delayed refunds, while separate court cases involving alleged misappropriation of Tk 3.8 crore have intensified scrutiny of the platform.

Delivery riders allege that earnings remain inadequate after fuel, mobile data and vehicle maintenance costs, while penalties and account suspensions are imposed without proper investigations. They have also raised concerns over the lack of accident insurance, medical assistance and income protection when injuries prevent them from working.

Restaurant owners have complained that high commissions, advertising fees, promotional costs and other charges eat into profits, while unclear payment calculations make it difficult to determine actual earnings. In Chattogram, the Bangladesh Restaurant Owners Association’s metropolitan unit launched a service suspension programme on October 6, asking restaurants to stop accepting Foodpanda orders in protest against the charges.

Customers have also reported late deliveries, incorrect or incomplete orders, sudden cancellations and delays in receiving refunds. Complaints over customer support and the handling of refunds have further fuelled dissatisfaction with the platform.

The Directorate of National Consumer Rights Protection held a meeting with Foodpanda in February over complaints concerning service delivery and refunds.

Separately, a Dhaka court on September 23 issued arrest warrants against Foodpanda Bangladesh Managing Director Syeda Ambarin Reza and four other officials in two cases alleging the misappropriation of around Tk 3.8 crore in transactions involving supplier Protein and Perishable. The allegations include irregular payments, allegedly fabricated invoices for returned goods and deductions under various categories.

Foodpanda’s parent company, Delivery Hero Stores Bangladesh, rejected the allegations, describing the dispute as a business transaction matter and denying criminal wrongdoing. The allegations have not been proven in court, and the company said the five officials had obtained anticipatory bail from the High Court.