Thailand’s food delivery drivers feel pinch as Grab, Line rack up losses

[webfact]

Thailand's food delivery drivers say their incomes have shrunk since the end of the COVID-19 pandemic [File: Lillian Suwanrumpha/AFP]

 

Gig workers say platforms such as Grab and Foodpanda have cut their pay rates without explanation.

grab

Bangkok, Thailand – When Piti began working as a Grab delivery driver at the height of the COVID-19 pandemic, the 26-year-old Bangkok resident had little trouble earning a decent wage.

 

But after two years of delivering food to homes and offices, Piti’s earnings have taken such a dramatic hit that he is looking to switch jobs.

For the past few months, Piti says he has been receiving a starting rate of 38 baht ($1.07) per food order, down from 40 baht ($1.12) in the past.

 

Worse still, Piti says he picks up far fewer gigs due to a sharp rise in the number of drivers on the road.

“I used to earn about 2,000 baht [$57] per day, but now some days I earn just 900 baht [$25],” Piti, who asked to use a pseudonym to avoid retaliation, told Al Jazeera.

 

By Jitsiree Thongnoi

TOP: Thailand's food delivery drivers say their incomes have shrunk since the end of the COVID-19 pandemic [File: Lillian Suwanrumpha/AFP]

 

Full story: https://www.aljazeera.com/economy/2023/9/8/thailands-food-delivery-drivers-see-wages-slump-as-platforms-cut-costs

 

-- AL JAZEERA 2023-09-11

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

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[Celsius]

Normal with gig economy.

 

 

[PremiumLane]

Got to pay those shareholders and the top bosses their bonuses, cos without them how would the food get delivered 

[redwood1]

I hope everyone tips the food delivery guys....I always tip on every order...

[spidermike007]

I always tip them. They make so little. If they are getting 9 baht for a delivery, gotta be hard to make a living. My 20 baht tip has to mean alot to them. And it means nothing to me. 

[Liverpool Lou]

10 minutes ago, redwood1 said:

I hope everyone tips the food delivery guys....I always tip on every order...

I can't understand why anyone wouldn't tip them.

[Liverpool Lou]

8 minutes ago, spidermike007 said:

I always tip them. They make so little. If they are getting 9 baht for a delivery, gotta be hard to make a living. My 20 baht tip has to mean alot to them. And it means nothing to me. 

They do not only get B9 per delivery, they are paid in the region of B38/40 per order according to the article.  I doubt that your B20 means a lot to them...B20?   I suppose that B20 is better than a poke in the eye with a sharp stick...but not much better, Rockefeller.

[Celsius]

6 minutes ago, spidermike007 said:

I always tip them. They make so little. If they are getting 9 baht for a delivery, gotta be hard to make a living. My 20 baht tip has to mean alot to them. And it means nothing to me. 

Thanks for not reading the article.

[Celsius]

3 minutes ago, Liverpool Lou said:

I can't understand why anyone wouldn't tip them.

 

Ask Thais

[Liverpool Lou]

7 minutes ago, Celsius said:

 

Ask Thais

Bit of an over-generalisation to suggest that Thais do not tip.

[redwood1]

I Always tip between 20-30 baht.....And they always seem pretty happy with the tip...

[redwood1]

If you look for the vochers or discounts very often they will give you 20-30-40 baht off the order so the tip ends up being free...

[Shop mak]

1 hour ago, webfact said:

I used to earn about 2,000 baht [$57] per day, but now some days I earn just 900 baht

They still earn 3-4 times more than people who work at 7eleven, hotel, factories.

Grab drivers have the freedom to take a rest whenever.

And when it starts to rain, either half the city all order at once - or half of their drivers return home.

4 years ago delivery was free, then delivery fee started and increased semi-yearly from 9-43 baht depending of distance.

 

Grab say they only earn 25% on top of food price, while many restaurants told me 35%, don't know what to believe. Still grab th go with a loss.

 

I tip for good service and politeness.

No tip for 5-7 chat messages from driver, driver ask for order confirmation, ask for 5 star rating long ahead of delivery, are pin correct, where is it (duh) some can't even find a hotel or highrise condo.

 

Sorry, but I don't feel sorry for grab drivers.

900+ a day is way above average salary here in Thailand.

[mokwit]

2 hours ago, webfact said:

cut their pay rates without explanation

Oo that's easy, running out of the external funding that their business model is based on with poor prospects of raising more. As another insinuated, initial generous rates to attract drivers subsequently cut, but I think we are past that stage.

[cjinchiangrai]

Paying for too many dead drivers and smashed Scoopies.

[mokwit]

16 minutes ago, Shop mak said:

They still earn 3-4 times more than people who work at 7eleven, hotel, factories.

Doesn't that make you question the viability of t5he business model?

[Celsius]

16 minutes ago, Shop mak said:

They still earn 3-4 times more than people who work at 7eleven, hotel, factories.

Grab drivers have the freedom to take a rest whenever.

 

Yes. Quite odd this tipping culture.

 

I would rather tip 7/11 and McDonald's staff. How cum people don't tip those? They work extremely hard with no breaks at all.

 

I tip massage staff very nicely because it is a service industry and it requires quite a lot physical effort.... 2 hours without any rest and then off to the next customer.... if they are lucky. Now that is work. 

 

Do you tip postal workers and Lazada delivery guys? Makes as much sense as tipping Grab drivers. 

 

 

 

 

 

[Jingthing]

53 minutes ago, redwood1 said:

I Always tip between 20-30 baht.....And they always seem pretty happy with the tip...

Exactly. 

[Jingthing]

1 hour ago, Liverpool Lou said:

I can't understand why anyone wouldn't tip them.

On rare occasions if they've been exceptionally rude in communicating in the process.

I still tip if very late or they're clearly incompetent.

They're risking their lives and they bring us great convenience.

[Shop mak]

4 minutes ago, mokwit said:

Doesn't that make you question the viability of t5he business model?

Absolutely.

And Grab finally realized it too. Desperately trying to include multi platforms, finance sector and whatever else.

 

Earning 60k at best per month as a motorcycle  driver, something is def wrong, compared to other occupations and average salaries in Thailand.

 

Grab should have a set salary of 20,000 (included 5k for gasoline) + Bonus 3,000 if driver reach a higher number of deliveries per month.

18,000 net is good salary for a motorcycle driver, compared with motorcycle taxi.

[WHansen]

Personally i can't feel sorry for them when my girlfriend only earns 300 Baht for a ten hour day with short breaks.

Sounds like easy money for riding a motorbike between a food outlet and a customers home to me.

[spidermike007]

1 hour ago, Liverpool Lou said:

They do not only get B9 per delivery, they are paid in the region of B38/40 per order according to the article.  I doubt that your B20 means a lot to them...B20?   I suppose that B20 is better than a poke in the eye with a sharp stick...but not much better, Rockefeller.

Sorry, but I don't believe everything I read. For many, who live in smaller towns the total cost is 120 baht for two dishes. Plus 9 baht for delivery. Who pays the 40 baht the article speaks of. I think that is nonsense. 

 

If it hurts you to offer the delivery person a tip, or you want to give them more, so be it. I will continue to show them kindness and gratitude. 

[Jingthing]

16 minutes ago, WHansen said:

Personally i can't feel sorry for them when my girlfriend only earns 300 Baht for a ten hour day with short breaks.

Sounds like easy money for riding a motorbike between a food outlet and a customers home to me.

It's really clueless to claim its easy money.

Also it's a high risk job.

[Gottfrid]

This is easy mathematic. Tip or no tip, the thing was same then as now. The problem is that they believe that they are still all needed. During Covid, there was more work and need for more riders. Now people can go out again, and there is too many doing same work and therefore they do not get enough salary.

[CanadaSam]

I tip ALL service workers, and 99% of the time, they are extremely grateful and you can clearly see the happiness in their faces!

 

And I am SO grateful for being in a country where a "mandatory" 20% is not required and I can tip according to the level of service I receive!

[hotchilli]

3 hours ago, webfact said:

Gig workers say platforms such as Grab and Foodpanda have cut their pay rates without explanation.

Honeymoon is over.

[hotchilli]

2 hours ago, redwood1 said:

I hope everyone tips the food delivery guys....I always tip on every order...

I must be in the minority who never found the need to use one?

[retarius]

Hahahahaha. World's worst drivers: grab, the pink one, and Line. The way they drive I'm surprised that there are any left alive.

[zig]

1 hour ago, spidermike007 said:

Sorry, but I don't believe everything I read. For many, who live in smaller towns the total cost is 120 baht for two dishes. Plus 9 baht for delivery. Who pays the 40 baht the article speaks of. I think that is nonsense. 

 

If it hurts you to offer the delivery person a tip, or you want to give them more, so be it. I will continue to show them kindness and gratitude. 

It is a common misunderstanding that the drivers get only the amount quoted as the delivery fee. No driver would work for 9 baht. Grab adds extra incentives for drivers from the commission Grab gets and even for very short rides the driver usually gets 20-40 baht. 

[Shop mak]

18 minutes ago, zig said:

It is a common misunderstanding that the drivers get only the amount quoted as the delivery fee. No driver would work for 9 baht. Grab adds extra incentives for drivers from the commission Grab gets and even for very short rides the driver usually gets 20-40 baht. 

 

Agree.

The driver earned 2,000 baht per day in peak season during covid.

If he works 12 hours = 166 baht per hour.

Lets say driver manage 4 deliveries within 1 hour = 41 baht average per delivery, before possible tip on top.

 

if driver work 2,5-3 hours he already earned more than what workers at hotel, 7eleven etc earn per day.

 

But hotel restaurant staff was often paid only 6,000 month, if not sent home, during peak covid.

Pity grab drivers? Get a grip.