Adjustment Summary on
New Distance Component Calculation Method
...First of all, thank you all so much for the continuous effort, feedback and patience during this period. Our Operations Team has received plenty of constructive tickets, personally visited many zones last week and collected really valuable feedback from different couriers related to this feature, both positive and negative. As per our commitment two weeks ago, we have now concluded our optimisation of the new distance component calculation function for each zone and vehicle.
Google Maps and Manhattan distance are two completely different measurements; it is expected that the exact same deliveries, when calculated by each mechanism, will provide different distances, both longer and shorter. The changes of the map function is one of the requests from our fleet community to use actual travelled distance instead of an estimation for distance component calculations (Manhattan distance) which is considered more accurate and fair.
Despite the number of tests we had conducted before the launch, specific optimisations for each zone and vehicle type were still required for mitigating specific discrepancies that were unpredictably found after rollout. Since the launch on 29/09, we have been analysing order data and adjusting individual components in each zone every day to improve the overall scheme. It has been a long process because each zone has unique characteristics and every vehicle type has different payment structures (distinct base and distance components), so each change had to be done on an individual zone level.
Below are the important points to note when comparing the new function to the old Manhattan methods, as well as the optimisations we have conducted over the last two weeks:
1. The minimum base component has remained unchanged for all zones and all vehicle types since late last year, including same-vendor stacked orders
2. We have not reduced our investment into the overall service fee, and have instead invested 17% more in the distance component
3. On average, the fleet receives higher service fees for ALL zones and ALL vehicle types
4. 66% of orders are being paid more, especially long distance orders
*15% of orders receive $5 more & 6% of orders receive $10 more
5. 4% less orders receive the minimum base service fee for all zones and all vehicle types, meaning that more orders will receive a distance fee
6. To reiterate, the Google Maps function will ensure more accurate distance calculation, so that all orders are paid more fairly, with longer delivery distance orders being paid more
7. We found out that for same-vendor stacked orders, the distance of the last part of the trip (from the first drop-off to the additional drop-offs) is not being fully calculated. Until this situation is fixed and the full order distance is considered in the service fee calculation, we will also proactively add back the extra distance fee as a manual adjustment. Details will be shared soon.
This new and all the other manual adjustments related to actual bugs in the app will keep being calculated and paid weekly (every Monday) until they are fully fixed:
(i) the discrepancy between the accepted and the paid amount,
(ii) canceled or dispatched first order of same-vendor stacks,
(iii) the $5.55 (fallback value)orders.
As mentioned in the initial communication, during the whole optimisation process we have been paying adjustments for all couriers who experienced a decrease in their full day earnings when comparing the same orders using Google vs Manhattan methods. Today will be the last day considered for this specific adjustment, with the last payment date being 14/10 (Friday).
Just like any other feature that we launch, we will analyse all data on a continuous basis and never cease to look for opportunities to further refine and optimise where possible. Please continue to share constructive and valuable feedback with us by raising tickets via the rider app or schedule a meeting with our Head of Logistics via https://calendly.com/foodpandahkops/foodpanda-conversation-with-head-of-logistics until 4th November . We promise that we read every single one.
Stay safe, healthy and thank you.
New Distance Component Calculation Method
We are extremely pleased to announce the launch of the new distance component calculation method supported by Google Maps, which will measure the actual distance traveled instead of the Manhattan length from this week onwards. The new distance calculation method will provide a more accurate, more transparent, and fairer service fee scheme to the fleet, with no change on the base (minimum) order service fee for any zones or vehicle. As with any new function launch, we highly welcome and encourage you to share your feedback with us by raising a ticket to Rider Support via the rider app, so that we can continuously monitor the performance and ensure the roll-out is as smooth as possible.
Below are a few key points of the new delivery distance calculation method:
- This new method, supported by Google Maps will vastly improve distance accuracy as it measures the actual distance traveled instead of the previous Manhattan length calculation.
- Where there are multiple paths available, the route suggested by Google Maps will be used for our service fee calculation.
-Stack order service fees will also be more accurate and fair by measuring the actual distance traveled of each journey that happens between different pickup locations (on stacked orders).
*Please refer to the image above for the Current vs. New Stack Orders Distance Calculation Methods
- This new method is not yet applicable to canceled orders (including orders canceled after pick up and return trip to vendor) at the moment (i.e. canceled orders will still be using Manhattan distance). The system will be updated soon whereby Google Maps’ actual distance traveled will also be applicable to canceled orders.
Since this new function will be able to eliminate distance calculation inaccuracies, the manual adjustments previously implemented to compensate for distance discrepancies will no longer be necessary and will cease upon the deployment of the new function including:
1. Distance discrepancy payment adjustments
2. Opposite direction compensation for same-vendor stacked orders
3. Victoria Peak special incentives
Please also refer to the above images carefully and visit our panda page (https://www.pandarider.hk/monthly-statement-adjustment) to learn more. Again, please do not hesitate to reach out to Rider Support should you encounter any problems.
Stay safe and happy delivery!