Taipei:Foodpanda, one of Taiwan's largest food delivery services, has announced that it will be implementing an increase in service fees by NT$2-6 (US$0.06-0.18) per order in the coming weeks.

According to Focus Taiwan, the company stated that starting November 15, service fees for regular users will rise by NT$4-6 per order. Meanwhile, for members of Pandapro, its monthly subscription program, the fees will increase by NT$2-4 beginning December 1.

The company explained that the revenue from these service fees is primarily allocated to maintaining system stability, supporting daily operations, and ensuring transaction security. This adjustment comes in response to Taiwan's Delivery Workers' Rights Protection and Delivery Platform Management Act, which took effect on July 21.

In early August, a representative from Foodpanda informed CNA that the new law had increased operating costs by 32 percent, necessitating changes to the pricing system. The rise in costs is largely attributed to new compensation rules requiring drivers to earn hourly wages equivalent to at least 1.25 times the statutory minimum wage, along with a minimum of NT$45 per delivery.

Foodpanda's statement on Tuesday highlighted that the new compensation rules have also prompted changes in how delivery orders are assigned to drivers, impacting their efficiency and further driving up costs. The company emphasized that it could not continue to absorb all these expenses in the long term, leading to the decision to implement what it describes as "moderate" service fee increases for customers.