By Laura Kemp • 30 July 2021 • 19:20
Credit: Facebook @Deliveroo
The food delivery company is considering ending its services because of the high costs of running its operations in Spain. The company said today, Friday, July 30, that it plans to focus on expanding in new and existing cities.
“The company has determined that achieving and sustaining a top-tier market position in Spain would require a disproportionate level of investment with highly uncertain long-term potential returns,” Deliveroo said in a statement.
The government in Spain gave food delivery companies three months to change their workers to staff contracts in one of the first laws in Europe that will protect gig-economy workers rights.
In June it was revealed that delivery drivers of platforms such as Uber, Glovo or Deliveroo, are solely being hired through subcontractors that, according to the unions, are offering precarious working conditions, subject to different agreements, and, in some cases, worse than those that had the riders as self-employed.
There is still a consultation to be held regarding ending Deliveroo services in Spain with riders and employees who will be affected. Deliveroo also said that Spain only accounts for less than 2 per cent of its overall earnings in the first half of this year, according to Rueters.
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Originally from UK, Laura is based in Axarquia and is a writer for the Euro Weekly News covering news and features.
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