Deliveroo: "employing riders could add £1 per delivery"

By Joe Lutrario contact

- Last updated on GMT

Deliveroo: employing riders could add £1 per delivery

Related tags: Employment, United kingdom

Deliveroo’s UK and Ireland boss has told MPs that employing workers full-time - as opposed to self-employed contractors - could add £1 per delivery.

The food delivery company is under fire because its delivery riders aren’t guaranteed minimum wage and don’t receive holiday or sick pay.

Dan Warne was one of a number of representatives of the so-called ‘gig-economy’ to speak to the House of Commons Business, Energy and Industrial Strategy Committee earlier this week.

He said that the flexibility of self-employment was ‘very, very popular’ with the company’s 15,000 riders and that the majority of them fit stints delivering takeaway meals around other work or studies.

The last few weeks have not been kind to gig economy companies. Uber London is currently appealing Transport for London’s decision to not renew its licence, although the setback is not expected to impact on the food delivery side of the business​. 

Earlier this week, Deliveroo came under fire from councils for over its use of kitchens on car parks and industrial estates. The Roobox project sees restaurant brands take space in Deliveroo-owned delivery-only kitchens and is seen as a big growth area for the meal delivery company.

But some councils are accusing Deliveroo of bypassing planning rules and have reported complaints from nearby residents over excessive noise. 

Related topics: Business & Legislation

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