Foodpanda Launches Low-Cost Rider Cover

Urban life in Bangladesh has increasingly integrated online food and grocery delivery services, transforming them from a convenience into an essential part of daily routines. Among the key contributors to this shift is Foodpanda Bangladesh, which has, over the past decade, emerged as a major employer within the country’s digital gig economy.

Foodpanda began its operations in Bangladesh in 2013 under Delivery Hero, a Germany-based platform. Today, it operates as part of one of Asia’s leading food and quick-commerce networks, with services extended across approximately ten countries and more than 400 cities in Asia. In Bangladesh, the company initially focused on Dhaka but has since expanded its operations to major cities across the country. Thousands of restaurants and merchants are now integrated into its platform.

Various studies indicate that Foodpanda has created over 20,000 direct and indirect employment opportunities in Bangladesh, a significant proportion of which are rider-based roles. This rapid expansion has been supported by its delivery network, digital payment systems, and its development of quick-commerce services. Following the introduction of Pandamart, the company also began delivering a broader range of essential goods beyond prepared meals.

However, alongside this growth, concerns regarding rider welfare have remained prominent. Delivery riders typically operate for long hours on congested roads, facing risks including traffic accidents, adverse weather conditions, extended working hours, and income uncertainty. In major cities such as Dhaka, the profession is often regarded as a high-risk occupation.

In response to these challenges, Foodpanda has partnered with the insurance service provider Bimafy to introduce a low-cost personal accident insurance scheme for riders. The coverage is available at an annual premium of just 70 Bangladeshi Taka and provides protection of up to 100,000 Bangladeshi Taka in the event of death or permanent disability resulting from an accident.

Key details of the insurance scheme are outlined below:

The claims process has been designed to be straightforward, allowing riders to submit claims through the app, dispatch teams, or online platforms. However, the policy does not cover damage to motorcycles or personal equipment, which has been noted as a limitation.

In October 2025, Foodpanda introduced an additional initiative in collaboration with Green Delta Insurance PLC. Under this arrangement, 1,000 top-performing riders were provided with free insurance coverage under a programme titled “Panda Riders Personal Accidental Insurance.” This scheme offers up to BDT 100,000 in the event of death or permanent disability, while partial disability support is capped at BDT 50,000.

The initiative has been described in analytical discussions as an example of performance-linked protection, where benefits are extended based on rider performance. Such models are also viewed as mechanisms for improving rider retention and enhancing workforce confidence within platform-based employment systems.

Despite these developments, the company has faced financial challenges. Reports indicate that Foodpanda Bangladesh incurred losses exceeding BDT 100 billion by the end of 2023. Economists note that the sector remains in a growth phase, requiring continued investment in expansion and technology infrastructure.

Globally, food delivery platforms are increasingly subject to regulatory scrutiny concerning worker rights and safety. Compared to these developments, Bangladesh is still in the early stages of regulatory evolution in this sector. Nonetheless, Foodpanda’s recent insurance initiatives may serve as an early model for structured rider protection within the country’s growing gig economy.