Taipei: Uber Eats has announced a modification to its payment formula for multi-order deliveries, set to increase courier pay by NT$4 (US$0.12) to NT$6 per order, in response to union complaints and regulatory scrutiny.
According to Focus Taiwan, starting August 17, Uber Eats will implement changes to its payment structure for "stacked orders"-situations where couriers deliver multiple orders in a single trip. The company has decided to calculate overlapping delivery times separately for each order rather than using the total combined time, addressing recent union grievances and a Ministry of Labor ruling that deemed the existing method non-compliant with legislation enacted on July 21.
Uber Eats has pledged to compensate couriers for any shortfalls experienced from July 21 to August 17 by the end of August. Additionally, the company revealed plans to adjust its overall reward system for couriers, promising an average increase of NT$4 to NT$6 in the service fee per consumer order, although specific details remain undisclosed.
The newly effective Delivery Workers' Rights Protection and Delivery Platform Management Act ensures a minimum payment of NT$45 per order and sets delivery-time pay at NT$245 per hour, which is 125 percent of the NT$196 hourly minimum wage.
Union representatives, including National Delivery Industrial Union Chairman Chen Yu-an, have spotlighted Uber Eats' previous pay practices as unlawful. Chen provided an example of a courier who should have earned NT$220.6 for handling two stacked orders but received only NT$118.5, indicating an underpayment of NT$102.1 prior to the recent legislative changes.
On August 10, the National Delivery Industrial Union, alongside the Taiwan Food Delivery Industry Rights Alliance, filed criminal complaints with the Taipei District Prosecutors Office. They accused Uber Technologies Inc. and Uber Eats Taiwan executives of fraud due to the unlawful calculation and underpayment of delivery workers managing multiple orders.
Earlier in the week, the Taiwan Delivery Industry Union warned of a potential nationwide protest unless Uber Eats rectified the underpayment issue by Friday.
In response to Uber Eats' statement, the National Delivery Industrial Union and the Taiwan Food Delivery Industry Rights Alliance expressed skepticism, highlighting the company's "history of untrustworthiness." Chen urged workers to continue reporting any illegal practices, emphasizing that the announcement would only be meaningful once the couriers receive their rightful pay.
The Ministry of Labor has affirmed its commitment to overseeing Uber Eats' adherence to the new law, ensuring the pay adjustments are deposited into couriers' accounts as promised.