Rivals such as Glovo and Uber Eats have also been forced to make changes to their employment. “The reclassification of riders could also increase the rate of employment-related claims being brought against the group in the future. In March, the Spanish government confirmed that food delivery couriers had to be treated as staff. “This could require us to incur significant additional expenses for paying riders (which could include the cost of additional benefits and social security contributions or significant additional expenses for paying riders), or potentially result in us even exiting that market. In it prospectus published in March, Deliveroo said law changes on employment status “could require us to fundamentally change our business model in the relevant jurisdiction and could make it more difficult to protect our intellectual property and confidential information.
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Uber Eats is now outsourcing its rider services to third parties, which the Spanish government said it will crack down on.īut courts in the UK have sided with Deliveroo and the Government has not commented on any plans to change the status of gig economy workers. The new rules come into effect from August 12 but the other big food delivery platforms, Uber Eats and Glovo, have yet to introduce employee status, leading to denouncements from unions. Spain, the Netherlands and other markets. Spain’s left-leaning government announced plans in March for a new law which would mean all platform workers are presumed “employees” and entitled to certain rights, unless a company can prove otherwise. Deliveroo, an eight-year-old, kangaroo-logoed startup floated on the London Stock Exchange on March 31st at a valuation of £7.6bn. It is understood that negotiations with trade unions in the country will start in September, with a view to ending operations in October.
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How to Use a Deliveroo Coupon Code Using a Deliveroo code is easy. The company said the plan to end operations in Spain means it can focus resources and investment in other markets. If you don’t know anyone who already uses Deliveroo, you can use our promo code BGPGCNDZTP which will enable you to save 5 total with 2.50 off your first order and 2.50 off your second order. Deliveroo is to stop operating in Spain (David Davies/PA) (PA Wire)ĭeliveroo plans to quit operating in Spain just four months after the government there announced that workers in the gig economy must be considered employees.īosses at the delivery app company said that to continue operating in the country would require a “disproportionate level of investment with highly uncertain long-term potential returns that could impact the economic viability of the market for the company”.ĭeliveroo, which currently operates in 12 countries globally, said the move will not have a material impact on the business, with Spain accounting for less than 2% of its gross transaction value in the first half of the year.
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