Deliveroo’s decision to shut down its Hong Kong operations by April 7 has left many food delivery riders, like Tam Yuen, bracing for the impact. Over the past five years, Tam, a 40-year-old motorcyclist, has relied on food delivery platforms, earning an average of HK$50,000 (US$6,435) a month alongside his full-time remote job.
Tam, who currently works for Foodpanda and Meituan’s Keeta, says he’s witnessed the gradual decline of orders from Deliveroo, attributing the platform’s struggle to its uncompetitive pay rates. “Deliveroo’s pay is not attractive at all. Last Friday, when it was raining, they only offered HK$30 per order, while Foodpanda and Keeta almost tripled that,” he noted.
For riders like Tam, who balance multiple platforms to maximize income, the closure of Deliveroo isn’t a shock. “Its payment per order lags behind the other two platforms significantly. Riders aiming to earn more will naturally avoid Deliveroo. As fewer riders take orders from them, delivery times will likely increase, which could frustrate customers,” he said.
Deliveroo, a London-based online food delivery company, announced its exit from Hong Kong on Monday, citing ongoing losses. As part of the transition, Deliveroo is selling certain assets to Foodpanda, which has encouraged its riders to join the competitor.
With Deliveroo’s departure, Foodpanda, a subsidiary of Berlin-based Delivery Hero, will be left to compete with Meituan’s Keeta platform, which has been operating in Hong Kong and Saudi Arabia. Meituan, China’s largest food delivery company, runs Keeta in Hong Kong and is listed on the city’s stock exchange.
For riders who have been using multiple platforms, the market shift might not result in major changes in their operations, but the reduced competition could affect both delivery times and rider opportunities moving forward.
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