Uber Eats to revise multi-order payment formula after union complaints

Taipei, Aug. 12 (CNA) Uber Eats said Wednesday it will modify its payment formula for multi-order deliveries and adjust its reward structure for couriers, with the changes expected to raise pay by NT$4 (US$0.12) to NT$6 per order.

Starting Aug. 17, Uber Eats will alter its payment formula for "stacked orders" -- when a courier handles multiple deliveries in one trip -- by counting overlapping delivery times separately for each order, the company said via a statement.

The company's decision to replace the current payment formula, which calculates stacked deliveries based on total combined time, follows union complaints and a Ministry of Labor ruling that the practice violates delivery worker legislation passed on July 21.

Uber Eats said it will pay out the shortfall incurred by couriers from July 21 to Aug. 17 by the end of August.

The company also announced plans to adjust its overall reward system for couriers starting Friday, though details were not disclosed in the statement. Uber Eats said the changes will add an average NT$4 to NT$6 service fee per consumer order.

The Delivery Workers' Rights Protection and Delivery Platform Management Act, which took effect on July 21, guarantees a minimum NT$45 per order and sets delivery-time pay at NT$245 per hour -- 125 percent of the NT$196 hourly minimum wage.

Underpayment protests

Earlier this week, National Delivery Industrial Union Chairman Chen Yu-an (陳昱安) highlighted the unlawful pay practice by Uber Eats regarding stacked orders.

Citing an example, Chen said a courier handling two stacked orders that took 25 and 29 minutes should have earned NT$220.6 under the law. Uber Eats, however, counted only the 29‑minute trip, paying NT$118.5 -- an underpayment of NT$102.1.

According to Chen, prior to the July 21 legislation, Uber Eats calculated compensation for stacked orders opaquely, failing to ensure a minimum of NT$45 per order.

On Aug. 10, the National Delivery Industrial Union and the Taiwan Food Delivery Industry Rights Alliance filed criminal complaints with the Taipei District Prosecutors Office against executives of Uber Technologies Inc. and Uber Eats Taiwan, accusing them of fraud for using an unlawful formula to calculate and underpay delivery workers handling multiple orders.

Earlier Wednesday, the Taiwan Delivery Industry Union warned it would stage a nationwide protest unless Uber Eats resolved the underpayment issue by Friday.

Union and ministry response

Reacting to Uber Eats' statement on Wednesday, the National Delivery Industrial Union and the Taiwan Food Delivery Industry Rights Alliance said they remain skeptical of the company's promises, citing its "history of untrustworthiness."

The announcement does not mean a thing until workers actually get their money, Chen said, urging delivery workers to continue reporting any unlawful practices they encounter.

Separately, the Ministry of Labor stated that it will continue to monitor Uber Eats' compliance with the July 21 law to ensure it deposits the pay differences into couriers' accounts.