A businessman representing the Karachi Chamber of Commerce and Industry recently said in a retail and e-commerce conference attended by hundreds of people that delivery riders have been seen racing their bikes in the city and claimed that food delivery riders almost rammed into his car twice.
The delivery riders — almost always in a hurry — are an important part of the retail business and they did play an appreciable role during the pandemic.
“So what is the need to deliver so fast when riders become prone to accidents and could hurt others too. Why [do they] not take five minutes more to reach safely?” the businessman questioned.
The relevance of ordering food from the comfort of one’s house was never acknowledged as much as it was done during the COVID-19 pandemic. Today, the increased quick-commerce – delivery of goods such as groceries at the doorstep — is on the roll.
“During the last few years the demand for two-wheelers increased drastically which was supported by apps like Careem, Bykea, Airlift, Foodpanda and Uber among others for transportation services and delivery of products,” said Arsalan Hanif, a research analyst.
“The reliance on these apps increased due to the COVID-19 outbreak as people avoid using mass transportation and doing groceries at stores. As a result, the demand for two-wheelers is increasing,” he added.
“I have to drop another order. So please, I am in a hurry,” said Mohammad Ali, a food delivery rider busy dropping an order near Karachi Press Club. In a brief conversation, Ali said that he does not know if there was any insurance he could claim in case of an accident or if there was anyone who has claimed insurance or compensation for any loss in a snatching incident. Ali said that he could earn a maximum of Rs. 25,000 if he worked eight hours a day for a month.
Another rider, Mohammad Faizan, who was waiting to receive an order from a hotel at Tariq Road was more candid. Faizan said that he works for 10 hours on weekdays and five to six hours on Saturdays and Sundays. He makes around Rs. 25,000 directly from the online delivery service that employs him and around Rs. 5,000 to Rs. 10,000 in tips from customers.
He said that there are riders from other cities who do not have families here and they work for 13 to 14 hours daily to get bonuses.
“If you do 130 deliveries from Monday to Thursday, you would get a Rs. 3,500 bonus. And if you do 130 deliveries from Friday to Sunday, you would get a Rs. 5,500 bonus. But I don’t try to get bonuses because the company would give faraway rides when a rider nears completion to get entitled for a bonus,” he said.
A 55-year old rider, Abdul Rasheed, finds it difficult to read and understand mobile apps but tries his best to get himself acquainted with them in an effort to earn some extra bucks working three to four hours in the night. He says he makes between Rs. 1000 to 2000 weekly. Rasheed works as a driver for a sum of Rs. 22,000 as a monthly income for a ‘miserly’ household.
“The ‘Seth’ (employer) has four cars including an MG-HS and a Fortuner. I requested him to increase my pay when he bought a new car as I have to clean them all. He declined, saying I can leave the job and he can easily get my replacement.”
Just like Ali and Faizan, Rasheed also doesn’t have any knowledge about insurance in case of an accident or any other mishap.
Another rider, Mohammad Mehboob, said that he has heard of insurance of up to Rs. 150,000 in case of hospitalization. However, he does not know what would happen if the hospital bill goes beyond that threshold. Mehboob says there is no insurance in case the riders go through snatching incidents.
Another rider, Fareed, said that he has heard of insurance of up to Rs. 50,000 per day and of life insurance too, but nothing is confirmed.
Meanwhile, Subhan said that he doesn’t know about insurance nor has he seen any of his acquaintances receiving any of it. None of the riders who were questioned earned over Rs. 30,000 directly from the company.
A delivery person from Pakistan’s biggest e-commerce platform, Muhammad Mobeen, said that he has a fixed salary of Rs. 25,000 and works 12 hours a day, six days a week. He said that he doesn’t know anything about insurance, nor does he know anyone who availed it.
All of the riders this scribe talked to had 70cc motorcycles and most of them were China-made and in dilapidated condition.
According to a ride-hailing and delivery startup that has 75,000 riders who work every month (as riders keep joining and leaving), its riders earn between Rs. 30,000 to 40,000 per month. The company’s commission is about 20 percent.
To qualify to become a rider, a person must have a bike and smartphone, CNIC, license and bike documents. The conditions to become a rider are almost similar for all companies.
Bykea was recently criticized for offering insurance to customers but not to its riders. However, a Bykea representative said that they have now given the option to its riders to insure themselves for any mishap for Rs. 6 per day.
“Previously, we offered coverage to our riders internally in case of accidents or mobile snatching incidents. But now the rider base has increased therefore we have brought State Life on board for rider’s insurance too,” said Bykea Chief Operating Officer Rafiq Malik.
Most of the popular companies were requested to answer a few queries regarding the issue multiple times but the queries remained unanswered.
According to a job portal, Indeed, the average income of a rider in Pakistan is just over Rs. 20,000. The best city to work is Sialkot, with an average salary of Rs. 31,000 followed by Faisalabad and Multan with an average income of Rs. 24,000. Riders, on average, earn Rs. 20,000 in Lahore, Hyderabad, and Karachi.
Foodpanda appears to be the top-paying company with riders having an average earning of Rs. 30,000 per month. It is followed by Daraz where riders earn Rs. 24,000 monthly, according to the website.
“There’s no social security or financial security for these delivery or ride-hailing service providers,” said Nasir Mansoor, General Secretary National Trade Union Federation. “Who would look after them in case of accidents and who would pay their pensions?”
He added that these ride-hailing or delivery companies are a part of a gig or informal economy. “Workers in the formal economy, such as factory workers, struggle to get their rights. One can easily imagine how workers in the informal economy must be exploited.”
He said that there was a dire need for improving the ‘centuries old’ labor laws. “But what our leaders are looking for is investment coming into these online startups and companies. They care little about the plight of workers,” he said.
In December last year, the Securities Exchange Commission of Pakistan (SECP) carried out amendments through the Companies Amendment Bill 2021. The amendments were aimed at promoting startups.
“Companies say the riders or drivers only have per trip contracts,” said Mansoor. “Nobody knows and no one cares to bother what happens to riders or drivers after that.”
Experts believe that the rise in the delivery business, as well as the ride-hailing services, jacked up the demand for motorcycles during the past few years. Previously, four-wheel ride-hailing services pushed car sales up, especially sales of low-fuel consumption used Japanese cars.
The motorcycle segment has seen significant growth during the last 20 years. It has grown from 86,000 units in the financial year 2000 to 1.9 million units in the financial year 2021, according to the numbers quoted by Pakistan Automotive Manufacturers Association (PAMA) members. Apart from PAMA members, local assemblers also make cheap Chinese motorcycles. Government officials have put total bike sales at 2.6 million in the financial year 2021.
Another food delivery rider, Muhammad Mehboob, said that it is a difficult, dangerous and thankless job. The remuneration riders are getting is very low.
“But then what else could we do?” he questioned.
You should change the image… It’s older than 1 year and belongs to a security footage of mobile theft/robbery with rider in Karachi… You can do better than this or it will surely gonna spoil the propakistani reputation.
They’re using it as clickbait.
Sending this site to trash for clickbaiting.
You Shouldn’t have done that.