Wondering why there is a shortage of food delivery riders in KL and Selangor? Maybe it’s just because they are so lowly paid
Thursday, 29 Apr 2021 07:01 AM MYT

BY SYED JAYMAL ZAHIID

Consumers and eateries have complained about delays and a shortage of riders lately. ― Picture by Hari Anggara
Consumers and eateries have complained about delays and a shortage of riders lately. ― Picture by Hari Anggara
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KUALA LUMPUR, April 29 ― Food delivery platforms like Grab Food and Foodpanda enjoyed a boost over the past year as Malaysians took to ordering food in a big way to avoid crowds during the various movement control orders.


But lately, consumers as well as eateries have complained about delays and a shortage of riders.

Some reports state that this could be because many of the riders could have gone back to their office jobs, others blame the rainy season while there are those who think that government hand-outs mean there is less of a necessity for people to take on these part-time jobs.




After talking to the riders themselves, one other possibility has surfaced: If riders have little incentive to continue, they won’t.


A key factor behind this, according to riders themselves, is the driving philosophy of today’s gig-based food delivery platform itself: keeping costs low to feed consumers’ absurd and insatiable demand for everything cheap, fast and good.

“Nobody would stay in this job if there are better ones out there,” said Radhi. “I have to work long hours just to earn RM140 a day. On the surface that sounds a lot, maybe it is, but it’s not every day I get to make that kind of money.”

Radhi’s grievance underscores the growing global disillusionment with the gig economy, which on one side has helped birth blue chip companies like Grab and Uber and, on the flip side, a new generation of lowly-paid “precarious” workers forced to depend on jobs that offer neither security or legal protection.

If the advantage of the gig economy is flexibility (of hours) with competitive income, Radhi believes that is really an illusion.

To earn around RM2,200, he would have to make many, many deliveries a day, usually averaging 12 hours consisting mostly of short distance deliveries that will get him RM5 per trip, and the occasional RM7 to RM8 for trips longer than 10 kilometres.

These fees are borne by customers themselves unless there are promotions, which service providers would subsidise as discounts. For profit, these firms take a clean cut from the food sold by merchants or vendors.

Long hours, just surviving

The gruelling hours have long been the source of contention among riders who feel their employers have failed to commensurate with the right pay.

Working hours can sometimes go as long as 12 hours, which Radhi confided is downright exhausting.

But growing up in a low income household means he has little option but to make those deliveries or he would earn much less.

With RM2,200 the job has helped him and his family, especially during the pandemic, when jobs are hard to come by.

Riders also have to apportion some of that salary to maintain and repair their bikes, which reduces their disposable income.

Most application-based delivery service providers, to keep costs at a minimum, do not provide bikes.

Combined with a pay system that can sometimes be unpredictable thanks to discounts intended to keep customers loyal, these issues have often been the source of tension between the firms and their riders, who in the past have launched several protests over what they felt was unfair compensation.

This friction is not unique to Malaysia. In the UK, for example, Uber drivers have reported feeling forced to work extremely long hours, sometimes more than 70 a week, just to make a basic living.

Many then became organised, went on strikes and launched lawsuits that eventually forced the ride-hailing app to recognise and pay them perks that come with formal employment, like healthcare benefits and overtime.

Malaysian riders, less organised, enjoy none of those benefits.

This longstanding dispute over pay and remuneration could be the underlying factor driving riders to shun these companies, causing the shortage and disrupting operations.

“If the job takes care of us, we wouldn’t go away right?” said Faliq, a part-time rider with a diploma in human resource management.

“I’ll split in no time if I get an office job,” he added.

The gig economy explosion has fueled a fierce ethical debate about whether or not regulation is necessary given the size and precarious nature of the industry, which tends to provide little job security and legal protection otherwise accorded through formal employment.

Labour rights proponents like Charles Santiago, Klang MP and an economist by training, have argued for “partial” regulation to accord workers some legal rights or fair compensation by enacting a law to force companies like Grab and Fo

Best not to guess or predict the share price of this stock whether using FA or TA.

https://www.malaymail.com/news/money/2021/03/27/investors-look-to-utilities-to-weather-any-market-rout/1961464

Just have to wait for the wave to come..

https://focusmalaysia.my/markets/us-investors-are-looking-to-utilities-stocks-to-weather-any-market-rout/

Strong resistance appears to be in the range of 50 to 53 sen. Waiting for it be punched through forcefully for the fourth time in the last 5 years. Hopefully the impending quarterly result would provide adequately the required momentum to do so.

Based on its last 5 years chart, each up-cycle rally took a few months to a year to complete. Each past cycle was noted to be slow but steady. Hence, it may probably take another few months to see its full upside potential. Just a really wild guess. Ain't chartist here.

It may not be commonly known that Jaks' power plant agreement has shielded its profitability from the risk of adverse price fluctuations of coal. Hence, its profitability is rather assured and its power revenue is tied to its plant operating capacity rather than power output or generation.

https://www.theedgemarkets.com/article/china-steel-rebar-soars-nearly-10year-high-output-cut-concerns

No announcement of COD for Unit 2 will effectively allow those in the know like fund managers or corporate raiders to quietly accumulate more shares cheaply at the current prices....

https://www.thestar.com.my/business/business-news/2021/02/17/sc-bursa-announce-temporary-relief-measures-for-listed-companies

Deadline for release of Q1 2021 result has been extended by SC and Bursa....

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=205503&name=EA_DS_ATTACHMENTS

Substantial disposal gain of RM380 mil cash to be recognized in Q1 2021

https://www.tradingview.com/symbols/MYX-JAKS/technicals/

Warrant-B may be a better buy now as compared to Warrant-C since the premium is lesser

https://malaysiastock.biz/Company-Announcement.aspx?id=1275697

https://www.theedgemarkets.com/article/peroduas-october-sales-hit-new-alltime-high-26852-cars

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=211727&name=EA_FR_ATTACHMENTS

MFCB's power business recorded RM274mil net profit against revenue of RM371mil (page 12 of the attachment) for 9 months ended 30/9/20. If we benchmark against MFCB's power business net profit margin, what should be the net profit of Jaks since ALP indicated the projected annual revenue being around RM700 mil for the power venture ???

https://malaysiastock.biz/Company-Announcement.aspx?id=1275100

Highest quarterly revenue of RM600 mil recorded in Q3 2020. EPS of 16.63 sen for the quarter.

Given the above, great result can be expected for its Q3 to be announced any time this month

National carmaker Perodua has recorded its highest ever monthly sales in its 26-year history with sales of 25,035 vehicles in September, a 10.8% increase from the 22,604 units it sold in August.

Together with the 23,203 units it reported in July, total sales in the third quarter of 2020 amounted to 70,842 units, up by 13,870 units (or 24.3%) from the corresponding Q3 in 2019.

Source: Paultan.org
https://paultan.org/2020/10/15/perodua-sells-25035-units-in-september-records-its-highest-ever-monthly-sales-in-its-26-year-history/

Something big brewing?

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=107429&name=EA_GA_ATTACHMENTS

RM72 mil disposal gain is to be reported soon as the disposal has been completed.

No more bleeding from the property division going forward for the next few quarters..

https://www.youtube.com/watch?v=tPMHZiR_htQ&list=PLTMFVFEuEuiy9F49p7Mjqm6eW-HDtIgvu&index

https://www.cytodyn.com/

https://edge.media-server.com/mmc/p/rdofnvf9/dimode/ondemand/preview_key/f7f3e9b393aab168625b9674f06976fa08e43ca43a7034240e2b7480f438950b

Listen to the above and do a thorough research to assess if it is worth investing in the OTC biotech company Cytodyn which is about to obtain FDA's approval on its amazing drug Leronlimab which can the solution to the global Covid-19 pandemic.

https://www.thestar.com.my/business/business-news/2020/07/23/pharma-stock-play

The vaccine story aside, Equitiestracker Holdings Bhd head of research Lim Tze Cheng said the demand for vitamins and general supplements has been strong during the movement control order (MCO), which would see pharmaceutical companies that deal more on supplements seeing stronger numbers in upcoming quarters.

https://www.theedgemarkets.com/article/pharmaceutical-stocks-down-profit-taking-after-hitting-new-highs-0

Athila noted that it was not a surprise to her that Pharmaniaga and Duopharma have been tasked with the COVID-19 packaging process in Malaysia, given that both have the largest manufacturing and pharmaceutical facilities in Malaysia as well as a reliable nationwide logistic network already in place.

She added that more than 50% of Pharmaniaga and Duopharma's products are supplied to the Ministry of Health's hospitals and facilities.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3062138

The main objective of the Platform is to improve the bank confirmation efficiency and reduce the respond time from weeks to days. This collaboration is for a period of 12 years contract period from 2018 until 2030.

At the initial stage, the Platform will levy a flat transaction fee of RM15 (excluding service tax) for confirmation conducted through the Platform. The current target market of the Platform are member firms of MIA who are currently auditing approximately 1.3 million private and public limited company registered with Companies Commission of Malaysia (“CCM”) who are required to procure bank balance confirmation from licensed financial institutions for the preparation of statutory and/or non-statutory audit.

As at the date of this announcement, 354 of member firms of MIA had registered as participating auditors with the Platform and the Company expects more member firms to participate in the Platform after the launch.

https://econfirm.my/about-econfirm-platform/

It's kinda another MYEG in the making. Digital platforms will rule in the new norm post Covid-19 pandemic.

https://econfirm.my/

https://econfirm.my/about-econfirm-platform/

A few major participating banks for this app?? Home run for the company !!!

The hidden value of this company are the various JV agreements that it has.

This company has signed up a lot of valuable and favourable JV agreements in the past few years. Hence, it should be a good target for take over if its share price remains so low when the property market starts to recover.

Trading at P/E of 2.66 and 78% discount to NAPS.

Long overdue for privatization.....

Wouldn't be surprised to see the company being privatized at RM1.00 or RM1.30 or RM1.50 if people continue to sell cheap at the current price but the NTA per share is RM3 even before the revaluation of its cheap land bank..... it's a matter of time....

This company has signed up a lot of valuable and favourable JV agreements in the past few years. Hence, it should be a good target for take over if its share price remains so low when the property market starrts to recover.

Compared to glove counters, there may be a lot more room for property counters to recover once the current rotational play shifts to this sector which has been sleeping or consolidating for so many years....

The company can be expected to report good profits for the next few quarters due to its on-going projects, and benefit from the latest incentives announced by the govt for the property sector.

https://www.malaymail.com/news/malaysia/2020/06/05/tax-reliefs-for-real-estate-automotive-industries-under-penjana/1872818

https://klse.i3investor.com/servlets/stk/annchdr/5038.jsp

Major shareholders bought in May in anticipation of the below announcement?

https://www.malaymail.com/news/malaysia/2020/06/05/tax-reliefs-for-real-estate-automotive-industries-under-penjana/1872818

Good news for property counters

https://www.malaymail.com/news/malaysia/2020/06/05/tax-reliefs-for-real-estate-automotive-industries-under-penjana/1872818

Good news for property counters

https://www.malaymail.com/news/malaysia/2020/06/05/tax-reliefs-for-real-estate-automotive-industries-under-penjana/1872818

Good news for property counters

Hi DK66, please add me. Thanks

Still buying.....

https://klse.i3investor.com/servlets/stk/annchsh/1147.jsp

https://cdn1.i3investor.com/my/files/st88k/2127_COMFORT/pt/RHB-OSK/2127_COMFORT_RHB-OSK_2019-12-17_BUY_1.08_Comfort%20Gloves%20-%20Progressing%20Steadily;%20Maintain%20BUY_15850683.pdf

https://www.theedgemarkets.com/article/trading-interest-rubber-glovemakers-increases-covid19-cases-continue-rise

Cumulatively 3 quarters of much better results year-on-year. Unfortunately the share price is still stagnant....way below NAPS, and the market capitalization is way below its total cash in hand.....

Agreed. Homeriz will reap much benefits from the weakening ringgit that would boost its exports.

https://www.nst.com.my/business/2020/02/567399/carimin-net-profit-q2-jumped-53-cent-rm805-mil
The company needs a Research House to promote the company and assign a target price.

https://klse.i3investor.com/servlets/stk/annchsh/1147.jsp

started buying again??


https://www.theedgemarkets.com/article/global-oriental-stages-strong-r...

http://www.pavilion-reit.com/280_188_188/Web/WebPage/Board-Of-Director...

https://malaysiastock.biz/Company-Announcement.aspx?id=1003483
The above 5 years contract from Petronas awarded in Oct 2017 has cemented a strong profitable foundation for Carimin until Dec 2022.


https://malaysiastock.biz/Company-Announcement.aspx?id=1158298
https://malaysiastock.biz/Company-Announcement.aspx?id=1170284
https://malaysiastock.biz/Company-Announcement.aspx?id=1193732
https://malaysiastock.biz/Company-Announcement.aspx?id=1202409
https://www.offshoreenergytoday.com/carimin-to-provide-accommodation-w...

With the above 4 additional projects secured between July 2019 and Feb 2020, therefore Carimin can be expected to report reasonably good, if not better, quarterly results for the next two years.

If its annual EPS can hit 20 sen, it will be interesting to see its share price movement, especially when its market capitalization is still relatively smallish at RM276 mil @ RM1.18 per share.

http://www.carimin.com/images/gallery/Carimin_AR_2019.pdf

https://www.enanyang.my/news/20200214/carimin%e4%b8%8a%e6%8c%91rm1-38%e6%95%8f%e6%ba%90/

https://www.enanyang.my/news/20200210/comfort%e6%89%8b%e5%a5%97%e6%8c%91%e6%88%98rm1-00%e6%95%8f%e6%ba%90/

https://malaysiastock.biz/Company-Announcement.aspx?id=1202409

The Board of Directors of CPB is pleased to announce that the Company’s wholly-owned subsidiary, Carimin Marine Services Sdn. Bhd., had received a Work Order Award dated 21 January 2020 for the provision of Accommodation Work Boat (AWBOAT) for PETRONAS Carigali Sdn. Bhd. (“Contract”).

The Contract will be for a duration of up to seven hundred and sixteen (716) days from the commencement date as per the vessel’s on-hire certificate

https://www.theedgemarkets.com/article/stock-momentum-bcb-bhd

https://www.malaymail.com/news/malaysia/2020/02/10/hit-by-ncov-asian-business-group-to-truck-three-million-malaysian-medical-g/1836011
Noble effort