Simply Eat planning to make 1,700 couriers redundant within the UK | Gig financial system

Simply Eat is planning to make 1,700 couriers redundant within the UK because the takeaway supply agency shifts again in the direction of a gig-economy mannequin and ditches assured minimal pay, sick pay and vacation pay.

An additional 170 head workplace workers may also lose their jobs because the agency makes an attempt to chop prices in a extremely aggressive market.

It’s understood that almost all of the top workplace roles are within the UK, in London and the cities the place Scoober operated.

The corporate took 10% fewer orders final 12 months within the UK and Eire whereas losses for the group ballooned to €5.7bn (£5bn) from €1bn a 12 months earlier than after a sequence of strategic missteps together with the acquisition of US supply agency Grubhub and Brazil’s iFood.

The courier redundancies mark a U-turn from Simply Eat’s earlier purpose to finish gig-working throughout Europe by providing employee standing, which ensures higher employment rights than the self-employed contractor mannequin broadly utilized by rivals together with Deliveroo.

Alex Marshall, president of the Unbiased Employees Union of Nice Britain (IWGB), mentioned: “When Simply Eat mentioned it was going to [introduce worker contracts] it did appear a step in the precise course. It’s irritating … it seems it was nothing greater than a PR stunt and they’re no higher than the others who chew up and spit out employees.”

Andy Prendergast, the nationwide secretary of the GMB union, mentioned: “Simply Eat’s determination to put off 1,700 employees is a betrayal of those that have labored so exhausting for the corporate. On the actual second when rivals like Deliveroo are providing improved advantages and sick pay, this can be a backward step that underlines the necessity for minimal requirements for supply employees.”

Simply Eat started providing employee contracts in 2020 and signed up greater than 3,000 of its couriers in London, Birmingham, Liverpool, Nottingham, Cambridge and Brighton on the peak to what it calls Scoober. These numbers have since fallen to 1,700 as riders have moved on. Simply Eat has supplied fewer couriers its new deal and riders have been given six weeks discover with pay.

Inside Scoober – the riders had been entitled to greater than the authorized minimal in hourly pay, pension contributions and advantages together with vacation pay and sick pay.

The couriers additionally work set shifts, are supplied with e-bikes or e-mopeds, that are maintained by the corporate, and have the choice to function from a central hub, the place they’ll choose up gear and take breaks. They stopped working for a number of different apps concurrently delivering for Simply Eat.

A spokesperson for Simply Eat mentioned: “Simply Eat UK is reorganising and simplifying its supply operation as a part of the continued purpose of bettering effectivity. As a part of this course of we have now proposed to transition away from the employee mannequin for couriers, which is a small a part of our total supply operations – working in sure elements of six UK cities. There will likely be no influence to the service supplied to companions and prospects.

“Our high precedence now could be to assist impacted staff and couriers. We’re vastly grateful to our proficient colleagues and couriers who’ve been a part of the employee mannequin within the UK.”

The corporate is known to anticipate to proceed to make use of the Scoober mannequin in continental Europe with extra openings deliberate this 12 months. The UK Scoober riders will have the ability to apply for self-employed contractor roles for Simply Eat if they want.

The transfer is a disappointing setback for employees’ rights campaigners who hoped that gig financial system corporations would take into account change after Uber was compelled to pay its UK personal rent drivers minimal wage and vacation pay when the UK supreme courtroom backed a 2016 employment tribunal ruling that its drivers ought to be classed as employees.

The takeaway courier enterprise Deliveroo’s inventory market debut was additionally hit by issues concerning the employment standing of its employees after it emerged that the corporate had put aside £112m to cowl potential authorized prices regarding efforts to enhance their rights.