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Deliveroo Freelancers Lose Their Jobs Due To The Closure In Spain

Deliveroo leaves Spain. The decision opens the door to the dismissal of 3,871 people, including office personnel and delivery men. The company’s intention to leave the country is due, according to a company spokesperson, to competition in the sector. However, there are those who point out that the entry into force of the ‘Rider law’ could have accelerated the process.

The Rider law forces food delivery platforms like Deliveroo to hire their delivery men. In this way, Deliveroo should dispense with the figure of the autonomous delivery person. The norm, agreed by the Ministry of Labor with employers and unions, will come into force on August 12 and will force platforms of this type to use salaried distributors instead of freelancers.

The company has explained in a statement that if it remained in Spain it should “maintain a first level market position”, which would require “a very high level of investment with a very uncertain potential return”.

High social security

Regarding the controversy of the ‘riders’, those responsible for the company have reported that they are already working to register them with Social Security, which they will do before ceasing their work in Spain. Once they do, they announce, they will negotiate with their representatives the conditions of the collective dismissal.

Both the Professional Association of Autonomous Riders (APRA) and Repartidoresunidos.org fear that the new law will suppose a “flight of companies”. In the same way, they regret the loss of employment that the departure of Deliveroo will mean from the country. Both organizations are studying new mobilizations against the government and the unions.

Deliveroo began operating in Spain in 2015. Over time it has become one of the major operators in the delivery sector together with Glovo, Just Eat and Ubereats.

Currently, the company is present in a dozen countries around the world. In addition, as indicated, its activity in the domestic market represents “less than 2% of the gross value of transactions (GTV).”

For their part, the CCOO and UGT unions have requested guarantees for the workers affected by Deliveroo’s decision to leave Spain.

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