food delivery company just eat started dismissal related to 1,700 distributors It is located in England. Based in Denmark and headquartered in London, the firm is therefore mobilizing a restructuring to change its structure. business model and imitate the competition, because after termination their ‘riders’ self-employmentAs ‘The Telegraph’ progresses. Certainly Just Eat was a pioneer in Spain in hiring couriers directly and betting on a hybrid model of salaried and subcontracted fleets.
Sources consulted from the company stated that the model change in the UK will not have an impact here and they have reaffirmed their current operating models in accordance with the ‘Rider law’ and against the employees of their main competitors, balloon and Uber. “We act within the legal framework of the markets in which we operate. In Spain we are committed to our Scoober model (distributors with employment contracts) and we have plans to implement it here and in more cities in Europe,” they say. from the company.
Just Eat thus joins the long list of template tweaks made by delivery platforms in recent months. delivery hero anyone to obtain. The sector, which is trying to adapt to the current situation through layoffs and leaving certain markets, was also affected by the end of pandemic restrictions and the increased cost of financing ways. German Delivery Hero, which owns Glovo, has gone through staff cuts in its offices and halted expansion in some markets. The Turks of Getir recruited embattled rivals such as the Gorillas and triggered a wave of layoffs of delivery drivers and construction personnel.
And now Just Eat has announced its own arrangement and has started making moves at its UK headquarters. Announcing the said restructuring three weeks after announcing its 2022 results, the company promised its investors to increase its profit margin and stay on the path of green numbers by consolidating its portfolio. 90 million customers worldwide according to figures provided by the company. And one of the ways Just Eat has chosen to support this promise of benefits is to lay off some of the workforce and save on labor costs by switching to a self-employment model, where they incur Social Security contributions.
According to sources consulted with the company, this model change in the UK will not affect Spain. A few months ago, it announced that its fleet had surpassed 1,000 employees on the payroll. And it was the first (and currently the only) country to sign an employment contract with the CCOO and UGT, among others, to agree on a contractually agreed minimum wage of a few hours. The rest of the main ‘delivery’ firms operating in Spain compete with autonomous distributors; this is something that has been investigated by the Labor Inspectorate and the courts, which has already led to Glovo and, to a lesser extent, Uber million-dollar fines.