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The
London-based company, valued at more than $1 billion after a
recent funding round, said a proposed plan to pay riders per
delivery and not per hour had been a trial that its staff could
opt out of if they wanted to.
The new system of payment per delivery had prompted staff
protests, criticism from the government and condemnation from
the opposition Labor party which accused Deliveroo of offering a
return to a piecemeal "Victorian system" by cutting costs and
increasing insecurity for staff.
"Our riders are the lifeblood of our company," founder and chief
executive William Shum told BB radio on Monday.
"This is a choice for them. If the riders choose to be on the
new scheme, great. If riders feel like it's not for them they
can always choose to work on the old scheme as well."
The dispute echoes similar standoff in the United States and
elsewhere between staff and fast-growing tech platforms such as
Umber [UBER.UL] which provide an instant service to customers
through workers who are self employed.
With their distinctive black and teal jackets, Deliveroo riders
have become a familiar sight on London streets since the firm
started trading in 2013, delivering food from restaurants which
do not have their own delivery service.
The firm, which competes with the likes of Just East and
Retreats, says it has around 6,000 riders in Britain, with 3,000
in London, using either mopeds or, more commonly, bikes.
Active in 12 countries across Europe, Asia and the Middle East,
Deliveroo tested a system in five areas in London last week
where riders received 3.75 pounds per delivery rather than the
current 7 pounds per hour plus one pound per delivery.
Deliveroo said in the trial of the new system, the average
hourly fees for riders had doubled at the busiest times. "We are
open to all feedback and, contrary to speculation, have not
taken any action against riders who have expressed concern with
pay or the payment model," it said in a blog.
Delivery's new pay scheme has made headlines in Britain where
there is mounting public anger over low pay and job insecurity
for ordinary workers.
"Individuals cannot opt out of the rights they are owed, nor can
an employer decide not to afford individuals those rights," said
a spokesman for the department of Business, Energy and
Industrial Strategy when asked about Deliveroo.
Workers in Britain aged 25 or over are entitled to receive the
national living wage of 7.20 pounds, but those who are self
employed do not. Two drivers for taxi app Umber have taken the
firm to an employment tribunal in Britain, arguing they should
get holiday and sick pay.
The Deliveroo dispute in Britain follows two years of court and
regulatory battles in Silicon Valley, the spiritual home of tech
startups, over how dozens of on-demand delivery companies pay
drivers as contractors rather than as full-time employees.
(Editing by Jane Merriman)
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