What Happened
Delivery riders working with PedidosYa in Panama have halted service for three days in protest over changes to the company’s payment system, saying the new structure cuts deeply into their monthly income. The dispute has affected service in several cities where the platform operates, including Panama City, David, Santiago, Colón, Chitré and Las Tablas.
The riders say the revised formula lowers what they earn per delivery and leaves them covering the costs of fuel, vehicle maintenance, insurance and other operating expenses. They argue that the change threatens the viability of a job that depends on long hours on the road and steady order volume.
How the Pay Model Changed
Under the payment system the riders described, the base rate per delivery is $2.50. They estimate that completing 500 orders a month would bring in about $1,250 before expenses. With the new structure, they say the average payment drops to about $1.95 per delivery, which would reduce monthly income to roughly $975.
The riders say that represents a decrease of between 36% and 40%. They are calling for a higher base rate of $3.50 per order, a level they believe would raise monthly earnings to as much as $1,400, though still requiring long workweeks to reach that figure.
Concerns About Working Conditions
One rider said the job is treated as independent contracting on paper, but in practice operates like salaried work. He said riders follow schedules, receive orders and face penalties if they do not comply with platform rules. He also said some workers are blocked from the app after complaining or failing to meet performance expectations.
The riders say shifts can run from 12 to 16 hours a day, or as much as 70 to 80 hours per week and even 90 in some cases. They also say the system penalizes basic breaks, making it difficult to stop for meals or restroom visits without affecting their performance ratings and access to future hours.
Another major concern is the absence of social security coverage. Because riders are registered as independent workers, they say they do not receive the benefits or protections normally tied to formal employment, including medical coverage and workplace accident protection.
Government Response
Labor Minister Jackeline Muñoz questioned the protest and focused on the company’s compliance with Panama’s labor rules on national hiring. She said the first requirement is that the company respect the percentage of Panamanian workers required by law.
Muñoz said Panama’s labor legislation requires 90% local labor and 10% foreign labor. She also said the riders have not formally presented their case to the ministry and described the work stoppage as irresponsible without a formal list of demands.
At the same time, the minister acknowledged that it is difficult to supervise a model built around independent workers and said inspections could still be carried out. She also questioned the structure of the company’s contracts and said the ministry does not have a clear record from the firm on the matter.
Company Operations Continue
PedidosYa said service in Panama remains active, though it acknowledged delays in some areas because of protests by some independent riders. The company declined to comment further on the labor dispute.
The standoff has drawn attention to the growing tension between digital platforms and workers in Panama, where the delivery business has become a familiar part of daily life for consumers and an important source of income for thousands of riders and affiliated businesses.