Some delivery companies are taking advantage of third-party vendors to bypass strict labor laws when hiring couriers, according to Just Eat Takeaway.com NV Chief Executive Officer Jitse Groen.
(Bloomberg) — Some delivery companies are taking advantage of third-party vendors to bypass strict labor laws when hiring couriers, according to Just Eat Takeaway.com NV Chief Executive Officer Jitse Groen.
In countries including Spain and Switzerland, Just Eat’s competitors rely on subcontractors that flaunt local regulations, Groen said in an interview on Wednesday. The practice makes for lower-quality service and brings down expenses, according to Groen, who calculated that a Just Eat competitor in Spain has one-third of his company’s costs.
“That is a concern,” said Groen. “We can’t cross red lights. It’s very strange that very large companies keep on ignoring the law.”
Groen has long criticized the gig-worker model that treats drivers as self-employed contractors, opting instead to pay hourly wages, and he has previously questioned whether using gig workers is legal in parts of Europe. However, Just Eat announced in March its UK business will use more self-employed drivers in a bid to become more efficient as demand for food delivery stumbles.
“We can’t incur more costs than our competitors,” said Groen, speaking about the changes in the UK. “I would always argue that it’s good to have more protections, but you know, it needs be level playing field.”
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.