All foodpanda deliveries to cost S$0.20 more from Jan. 1, 2025 as platform fee increases

foodpanda announced on Dec. 30 that it will raise its platform fees from S$0.40 to S$0.60 from Jan. 1, 2025.

The company joins a number of other platforms that announced higher fees from Jan. 1, when the recently enacted Platform Workers Act takes effect.

foodpanda's new platform fee of S$0.60 matches the rate to be charged by rival food delivery service provider Grab.

Users were informed of the new fees in an email on Dec. 30.

The email did not mention the Platform Workers Act specifically, but said the increased platform fee would enable "government initiatives that uplift our delivery partners".

It also said the increase would go towards "ongoing efforts" to provide users with "a seamless and reliable experience" and foodpanda's own engagement programmes.

"We understand that price changes are never easy, and appreciate your continued support as we work to enhance our services and help our foodpanda community thrive," said the company.

What is the Platform Workers Act about?

The upcoming Platform Workers Act was passed by the Parliament in September 2024 and comes into force in January 2025.

The new law provides greater labour protections for private-hire car drivers, cabbies and delivery workers.

According to the Ministry of Manpower, the new law provides for the "rights, obligations, protections and representation of platform workers and platform operators".

The law mandates CPF contributions for platform workers born after 1995.

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Top photo via foodpanda on Facebook