Exploitation could worsen under delivery duopoly following Deliveroo’s Hong Kong exit, says concern group
Hong Kong Free Press
A delivery workers’ concern group has said that Deliveroo’s imminent exit from the Hong Kong market may result in further labour exploitation owing to the food delivery duopoly it leaves behind.
Other than Deliveroo, foodpanda and Keeta are currently serving the local market.
Justine Lam, a programme officer of the Riders’ Rights Concern Group, said that labour conditions had worsened over the past two years, particularly after Keeta – operated by Chinese delivery and retail giant Meituan – launched in Hong Kong in May 2023.
She added that Deliveroo’s exit was not surprising as its order volumes had been declining since Keeta entered the market.
Keeta became the city’s leading food delivery platform last year as it took 44 per cent of the city’s food delivery market by order volume last May, according to market data firm Measurable AI.
Many Deliveroo workers are already working for Keeta and foodpanda, Lam told HKFP on Tuesday.
“But now that delivery workers can only work for either Keeta or foodpanda, we are worried that both companies will implement more controlling and exploitative policies on the delivery workers,” she said.
“We are particularly worried about Keeta’s treatment of delivery workers because they’ve already introduced various policies that are highly exploitative.”
Speaking on Commercial Radio, Lam said that Keeta had implemented policies to cut delivery workers’ wages, such as a “bonus” system that yielded extra pay for completing a specified amount of orders, on top of the basic pay for the deliveries.
“They would cut the basic income from deliveries and transfer that to the bonuses. But they would be required to complete a certain amount of orders per week, meet a certain order acceptance rate, or reach a certain punctuality rate before they can get the bonus,” Lam said. “In effect, they are cutting wages.“
Deliveroo on Monday told customers it was unable to provide a “great service,” while a press release said continued operations in Hong Kong did not serve their shareholders. The company also said it had nominated liquidators and would accept orders until April 7, its last day of service.
Separately, Deliveroo told Ming Pao that some 200 employees – not delivery workers – would be laid off and that the company would provide severance pay higher than the statutory requirement.
Under a transitional arrangement with foodpanda, delivery workers who join the rival platform will be entitled to an additional HK$200 service fee and HK$500 for completing 10 orders. HKFP has reached out to Deliveroo for comment.
Labour protections
The concern group, which is part of the Hong Kong Christian Industrial Committee, also said in a Monday evening statement: “No matter how many food delivery companies operate in Hong Kong, riders will continue to be regarded as self-employed, with no protection from work injuries or any other labour laws.”
The group is also worried that Deliveroo riders may not be entitled to severance pay when the company pulls out of the Hong Kong market, the statement added.
Under Hong Kong law, delivery riders are considered to be self-employed contractors and are therefore not entitled to severance pay, and can only fight for compensation through the Labour Tribunal.
Lawmaker Lam Chun-sing of the Federation of Hong Kong and Kowloon Labour Unions, speaking on RTHK, advocated for the creation of a third category other than self-employed persons and employees, which would allow delivery workers to be better protected under the law.
Hong Kong’s labour authorities have conducted a survey regarding regulation of delivery platforms and will present its findings towards the end of the month.
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