Deliveroo’ to cease all operations in Spain

Deliveroo' to cease all operations in Spain. image: Twitter

Deliveroo’ to cease all operations in Spain due to ‘excessive competition’.

The home delivery company ‘Deliveroo’ that has more than 2,500 delivery drivers and that collaborates with 10,000 restaurants throughout Spain, has now announced its intention to stop operating in the country, alleging strong competition in the sector.

The company said consultations, which will begin in early September and will last about a month, are open to its delivery drivers, who worked as self-employed and are part of the neccesary legal procedure to be followed in order to cease its business in the country.

The company has ruled out that the entry into force of the ‘Rider Law’, which aims to force digital delivery platforms such as ‘Deliveroo’ to hire their delivery drivers as employees instead of keeping them as self-employed, is behind this decision, according to Efe.

Regardless of the outcome of the consultation, company officials have specified in a statement that if they execute their exit from the country they will activate “an adequate compensation package that complies with national legislation”.

The company, which operates in a dozen markets around the world and Spain represents “less than 2% of the gross transaction value (GTV)”.

The takeaway app company blamed its relatively small market share, saying 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 that could impact the economic viability of the market for the company”.

 


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Ron Howells

Ron actually started his working career as an Ophthalmic Technician- things changed when, during a band rehearsal, his amplifier blew up and he couldn’t get it fixed so he took a course at Birmingham University and ended up doing a degree course. He built up a chain of electronics stores and sold them as a franchise over 35 years ago. After five years touring the world Ron decided to move to Spain with his wife and son, a place they had visited over the years, and only bought the villa they live in because it has a guitar-shaped swimming pool!. Playing the guitar since the age of 7, he can often be seen, (and heard!) at beach bars and clubs along the length of the coast. He has always been interested in the news and constantly thrives to present his articles in an interesting and engaging way.

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