Food delivery platforms under fire as riders protest pay cuts, industry calls for regulation

[Photo: Renato Marques]

Macau’s food delivery platforms, now about a decade old, have become a key part of the digital economy but have also sparked ongoing disputes over excessive fees that squeeze small restaurants and insufficient protections for riders, with an industry representative calling on the government to step up regulation and update the legal framework.

Online groups of food delivery riders have called for collective action to protest against repeated cuts in delivery fees and changes to pay conditions by the platform Aomi, urging fellow riders to go offline for a full 24 hours on Aug. 23. The move has drawn public attention and sparked heated online debate, but the platform has yet to respond.

Some netizens support the riders’ demand for fair pay, arguing that the platform’s commissions are too high and delivery fees too low. Others worry that the strike could disrupt daily food delivery services, especially for residents and merchants who rely on them. Some commentators are skeptical that the action will yield results, fearing the platform may not give in.

Riders are believed to be upset that the platform has repeatedly lowered per-delivery fees and compensation, arguing that this effectively shifts operating costs onto frontline workers. Aeson Lei, president of the Macau Catering Industry Association, told the Times that while the platform optimizes its own profits by reducing per-delivery income, riders are left to cover vehicle costs, insurance, fuel, and safety liabilities themselves.

“Riders are starting to feel short-changed – they’re delivering more and more, but their wages and commissions are getting smaller and smaller,” he said.

He described a situation in which the platform takes a high commission from merchants while also squeezing riders’ pay to boost its own margins.

[Photo: Renato Marques]

He went on to say: “Riders pay for their own vehicles, insurance, and fuel, and take full responsibility for any accidents.” He believes the platform has failed to take on corresponding social responsibilities while cutting delivery fees, calling on the government to amend laws to fill the regulatory gap and provide basic labor protections for riders.

The industry representative also pointed out that the platform takes a base commission of nearly 30% of turnover, and that participation in promotional activities or “voucher” campaigns can push the cut as high as 50%. On a single order, the platform takes nearly 30% from the start, leaving merchants to cover rent and wages on top. “Think about it,” Lei said, “how much of that profit is left for the food itself?”

He added that after years of development, the platform has become so dominant that merchants have little choice but to participate: “The platform controls the traffic and the delivery network. In the delivery sector, merchants have almost no alternative.” He said this is not just a Macau problem – the same situation exists in mainland China.

Lei criticized the current legal framework as insufficient and immature, giving platforms control over traffic distribution:

“Without proper laws and regulations to govern this digital world or traffic flow, a huge imbalance has been created.” This imbalance has two major consequences: small and medium-sized businesses’ profits are squeezed, and riders’ rights are left unprotected.

When it comes to friction between merchants and delivery services, Lei said the main issue is delivery capacity.

When merchants receive many orders, slow rider response times can delay food preparation, hurt customer satisfaction, and even raise food safety concerns. The recent online strike call reflects riders’ frustration with the current model, under which they pay for their own vehicles, insurance, and fuel, while the platform continues to cut per-delivery fees.

Lei stressed the urgency of regulating delivery platforms: “If the government doesn’t take action, I don’t think this problem will be solved.” He said proper regulation is not just about the survival of the food and beverage sector, but also about community economic revitalization: “When food and beverage thrives, other industries follow.”

On the government’s previous position that delivery platforms do not require a license and are therefore difficult to regulate, Lei said: “Laws from ten or twenty years ago may not be able to regulate today’s society or technology.” He urged the government to show leadership and strengthen oversight of e-commerce platforms to protect small catering businesses and safeguard Macau’s reputation as a “City of Gastronomy.”

As early as 2024, Lei had already warned that shops in residential areas were struggling and facing closure due to a sluggish economy and falling consumer spending, with delivery platform commissions squeezing merchant profits. He called on the government to legislate to regulate the sector, protect merchants and consumers, and allow platforms to operate lawfully – freeing up margins to support local eateries.