Opinion: Liam Cox, General Manager of Deliveroo in Ireland responds to a recent Brainstorm article on the gig economy.
RTÉ recently hosted an article about The rise and rise of the gig economy which examined the growth of people embracing the new way of working. The ‘gig economy’ is a broad description but what set it apart is that it is often tech-driven and involves self-employed contractors. Deliveroo is one of the most recognised brands in the gig economy because of our popularity and phenomenal growth - we are the fastest growing company in Europe - but also because we have led the debate about how to improve the gig economy.
In the recent piece, the academics involved spoke of how the spotlight is on legislative bodies and policy-makers about the current classifications of "worker" and "employee". This should come as no surprise, employment law often hasn't changed for decades while the world of work, and what people want from it has advanced rapidly. People want more flexibility when they work. They want their work to fit around their lives, not the other way around.
The view of the gig economy that was put forward is that people are losing out on the protections and benefits normally associated with the status of "employee" because they are somehow being forced into self-employment and that this is a worse way of working.
But self-employment is an attractive choice and proving popular because of the flexibility it provides to be your own boss. That flexibility is the number one reason people choose to work with Deliveroo. People want to be able to choose exactly when they work, how often and need the freedom to make those decisions on their terms.
But let’s not pretend this new way of working can’t be improved. In fact we think it’s time to end the trade off between the flexibility of self-employment and the security of employee status. Currently, if we offer certain benefits to riders we risk reclassification and an end to the self-employment status of rides. Riders tell us this is not what they want. The flexibility that comes from self-employment is the most important reason riders work with Deliveroo.
We have sought to do what we can in the current framework. This year, Deliveroo was the first platform in the on-demand economy to offer riders free insurance globally. 35,000 riders in all the countries in which we operate will now have access to free accident insurance to protect them and their earnings should they be unable to ride if they are hurt whilst out on the road. Other companies have since followed our lead and I believe this is the right thing to do.
But taking action like this carries a risk that a court might view as a change in the relationship between Deliveroo and riders, and class them as ‘employees’ rather than self-employed putting at risk what riders value most. Other benefits that we will be launching for our riders include education, training and upskilling.
The authors refer to a case in the UK where riders are "fighting for employment rights". In June of this year, a High Court judgement upheld the central finding of the Central Arbitration Committee in the UK, which is that Deliveroo riders are self-employed. This was great news for Deliveroo riders who value the ability to choose when and where to work.
For our riders, flexibility is the number one reason for working with Deliveroo. Over three quarters of our riders state this is the reason that they work with us. For many people life is what you fit around work, but attitudes are changing. For example, they want to fit work around study; 40% of our riders in Ireland are students. Riding with Deliveroo means deciding when you want to work, if you want to work and for how long. Riders are their own bosses.
Contrary to the impression given in the article, on-demand work pays well; the average earnings of a Deliveroo rider in Ireland is over €10.50 an hour with the potential of earning more at peak times. And, the technology lets the riders know when it is busy, allowing them to maximise their earning potential. If "platform demand is low" as stated in the article, riders don’t spend "significant time waiting". The technology identifies when demand is high so they can earn more and when it’s not, allowing them time to do other things, including working with some other platform or organisation; something they couldn’t do if they were employees. And, we are continuously working to ensure we have the fairest remuneration system possible, including paying higher rates for longer distances travelled.
One particular comment in the article needs to addressed. The authors state "GPS technology tracking allows organisations like Deliveroo to send performance reports to workers showing how their average delivery metrics compare to an algorithm’s calculation of how quickly they should have been able to complete orders." This is absolutely untrue. We do not send performance reports to our riders. There is no "tyranny of the algorithm" as suggested, in fact as outlined previously, the algorithm works in favour of the rider maximising their earnings by not wasting their time
We welcome the debate around the ‘gig economy’ and as one of the leading companies in this new way of working we are constantly seeking to improve our offer to riders. We are proud to be creating well-paid work for tens of thousands of riders across Europe. One way of doing this would be the introduction of a ‘Charter’ to allow platforms like Deliveroo to directly provide certain benefits, like insurance and payments to cover sickness or holidays, as well as training, without there being any risk that self-employed contractors will lose their employment status and the flexibility that comes with it.
A Charter would provide greater clarity for companies who want to offer self-employed contractors more security, as well as greater certainty for those who work in the on-demand economy.
The principles of this Charter could be easily adopted here in Ireland. Companies shouldn’t be penalised for offering riders a better deal. And It’s not an impossible task or fanciful idea. In France, President Macron has introduced legislation that would allow companies to offer benefits without their self-employment status being put at risk. The biggest winners of this new legislation are Deliveroo riders.
As the on-demand economy continues to grow, there’s the opportunity to set the standard for best practice for the future. Policy-makers need to act now to build the legal framework that benefits those who work in the on-demand economy, consumers and tech businesses like Deliveroo. I want to continue to build on our successes and also pave the way for future innovations while ensuring employment legislation is fit for purpose for everyone.
The views expressed here are those of the author and do not represent or reflect the views of RTÉ
