Food delivery companies respond to protest

Three food delivery services in Australia, Foodora, Deliveroo and Uber, have responded to claims of worker exploitation raised at a protest in Sydney.

Foodora quit Australia in August.

Foodora quit Australia in August. Source: AAP

Foodora:

The foodora model creates a tech-based ecosystem that connects restaurants, delivery contractors and customers. It is part of the gig-economy where flexibility and an autonomous workforce are the elements that make it unique, functional and appealing. foodora is proud to partner with a diverse range of riders across Australia, they are the backbone of our business and we value their efforts and commitment to foodora.

Foodora riders are engaged as ‘contractors’, and it is against foodora’s policy to discuss individual contract matters; we value the service of all contractors and the termination of services is not done lightly. Contractors have the freedom to work when and where they want, as much as they want, and they have the ability to accept and reject delivery orders as they wish. Furthermore, foodora contractors are not precluded from engaging with other operators simultaneously. The nature of the contractor status is that there are no guarantees in terms of an hourly rate. No foodora contractor is or has ever been penalised for taking time off work if their absence is registered or communicated via the appropriate channels. We rely on contractors to actively inform us of their status, as this is necessary to properly forecast and match supply and demand and create a great experience for our customers and restaurant partners.

Foodora’s business model continues to evolve and develop. When foodora launched, contractors operated on a fixed hourly rate as we did not have the volume of orders to support a delivery only model. As our business has developed and riders can deliver up to four orders an hour, foodora gives active contractors the opportunity to participate in increased efficiency and earn more when compared to a fixed hourly rate. Foodora will continue to operate in compliance with local laws and invites positive discussion with all stakeholders including riders, government entities and local communities.

Deliveroo:

Deliveroo riders are paid per delivery. Deliveroo pays $9-10 per delivery, plus tips. Typically riders can do 3-4 deliveries per hour during peak times, and sometimes far more. Feedback directly from riders tells us that they feel we provide flexible, well-paid work and 91% of riders say this flexibility around how and when they work is the main reason they work with us.

One of the most desirable benefits for riders of working in the gig-economy is that riders can log in or out based on the work available, so if there's no work available there is no obligation to wait. They are also able to log on to deliver for multiple platforms during the same time frame. We also provide riders with tips on how to maximise their earnings, for example during peak periods.

On average riders work around 15-16hrs a week with Deliveroo, and may be using that time to boost income alongside a full-time job or caring responsibilities, or as part of a portfolio of gigs across different platforms.

There is an algorithm that works in the background of our app which will match orders to those riders who are logged into the restaurant's zone and are available. This algorithm also works to drive efficiencies in restaurants around rider wait time so that riders are only booked when their arrival time matches the time the order is ready to go. This, in turn, means that riders can complete more deliveries per session and make more money at the same time.

Rider safety is absolutely critical to our business. That's why we provide WorkCover to all riders, regardless of vehicle type or tenure, and have done since commencing operations in Australia. This is then available to support them if an incident takes place during delivery.

As above, WorkCover is provided by the company to all riders. Additionally, riders with a motorised vehicle will need to have that vehicle insured according to their state regulations. We do ask riders to provide evidence of that vehicle insurance when they sign up to work with Deliveroo.

We would like to be able to offer more benefits in a way that is compatible with flexible working and reflects what riders actually want. We encourage Government to make a change in the current employment system that will end the trade-off between the flexibility that comes with self-employment and the greater security that particular benefits would provide. Deliveroo want to offer riders greater security, but doing so under current legislation would put at risk the very flexibility riders value. In a modern work environment, one that the gig-economy truly represents, benefits should be accrued on the basis of work performed, for example, the number of deliveries completed - rather than the duration of work completed, which is the current system for benefits such as sick pay or holiday pay. We hope that the Government will examine whether certain benefits can be accrued according to services provided rather than hours worked, which would help to end this trade-off between flexibility and security. [Deliveroo recently lodged a submission to the Future of Work and Workers Committee which gives a fuller view of our position on benefits - this can be found at .

Uber:

Flexible work that can be tailored around your life has traditionally been nearly impossible to find. There is demand for more flexible, independent forms of work and digital technologies are opening up reliable, diverse and unprecedented opportunities for income generation - often for those who need it most.

Delivery partners tell us they choose Uber because of the flexibility the app provides in letting them earn money in hours that suit them and their families. Delivery partner earnings vary depending on when and where partners choose to deliver.

Uber is deeply committed to the safety of our delivery partners and the communities in which we operate.


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6 min read
Published 14 March 2018 5:27pm


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