Keeta's HK riders strike over reduced pay rates

Keeta's riders in Hong Kong went on strike on Saturday (10 May), protesting against reduced pay rates since May and demanding that the company raise its per-delivery fee.

Around 40 riders protested near Hoi Pa Street in Tsuen Wan, stating that Keeta's continuous reduction of per-delivery pay since May has significantly decreased their income, leading them to strike during peak hours until Keeta adjusts the unit price, according to HK01 and on.cc.

The riders criticised Keeta for lowering per-delivery fees and eliminating peak-hour subsidies. They also criticised Keeta's "K GO" priority dispatch system, stating that it forces riders to accept lower per-delivery fees for priority order assignments, creating a pay cut and a system where riders are forced to "compete downwards" (向下競爭). A similar strike also occurred in Mei Foo, according to the SCMP.

Furthermore, riders posted a public letter on the Facebook group "Keeta外賣關注組” on Saturday, stating that Keeta has continually decreased order fees since May. They claim that Tsuen Wan riders now receive less than HK$38 per single order and less than HK$55 per double order during non-peak hours. They added that peak hour order fees are less than HK$45 per single order and less than HK$65 per double order, with no subsidies in the Tsuen Wan area.

“We as all Mei Foo motorcycle riders, cyclists and walkers today hold a strike against your unfair decreasing fee and all the sudden change of providing no subsidy in peak hours,” the post reads. 

According to the open letter, the workers are calling on the company to increase the payment per order to more than HK$43 and set the payment for double orders to at least HK$80.

In response, Keeta stated to local media outlets such as HK01 and on.cc that it respects the right of individuals to express their opinions peacefully and rationally, and thanked the delivery riders who remained committed to their duties.

Keeta added that delivery fees and rewards vary based on several factors. It offers various order acceptance models and reward programmes, with potential monthly rewards exceeding HK$8,000 for completing a certain number of orders. Keeta claimed that over 90% of active delivery staff have received additional rewards, according to its statistics.

The food delivery platform also said that it has upgraded its accident insurance coverage in April, increasing the payout from HK$550,000 to HK$1,000,000, according to the reports. 

MARKETING-INTERACTIVE has reached out to Keeta for a statement. 

Don't miss: Is Deliveroo's exit in HK an alarm or opportunity to remaining players?

Following Deliveroo's departure from the Hong Kong market in April, Keeta, the takeaway platform operated by Chinese food delivery group Meituan (美團), is now one of only two food delivery platforms operating in the city. Deliveroo's exit involved selling some assets to foodpanda and closing others.

As part of the changes, Deliveroo Hong Kong nominated liquidators to manage closure of the Hong Kong business and the remainder of its assets in the most efficient way possible, according to a statement seen by MARKETING-INTERACTIVE. Following the closing of the agreement, Deliveroo customers and riders are redirected to the foodpanda platform.

Back in May last year, a survey conducted by alternative data provider Measurable AI found that Keeta had seized 43% of the food delivery market share in Hong Kong in March 2024 and had become the largest food delivery service provider by order number in the city.

Join us this coming 17 June for #Content360 Hong Kong, an insightful one-day event centered around responsible AI, creativity VS influencers, Xiaohongshu and more. Let's dive into the art of curating content with creativity, critical thinking and confidence!

Related articles:

Keeta and LUBUDS redefine premium food delivery with new partnership
KeeTa's new campaign strengthens ties with Hongkongers
Survey: KeeTa captures 43% of HK market share in Q1 2024