Deliveroo and Uber Eats Coupled in a Valentine’s Day Strike
According to Forbes, consumer spending on Valentine’s Day in 2023 is estimated to reach $25.9 billion, making it one of the most significant events for consumer purchasing power in the annual calendar. This is noteworthy given prevailing macroeconomic challenges, such as a cost-of-living crisis. Despite being a lucrative day for online food delivery giants, as indicated by a study by St Pierre, revealing that over half of Britons prioritise food for Valentine’s Day, there have been recent strikes from drivers associated with Just Eat, Deliveroo, and Uber Eats.
On Valentine’s Day, more than 3,000 drivers participated in a strike from 17:00 to 22:00, strategically targeting the 'dinner rush' hours from 17:00 to 21:00, when Uber Eats experiences the highest influx of orders. The drivers advocated for improved pay and working conditions. This strike follows the landmark Supreme Court ruling that Deliveroo drivers are not considered employees, depriving them of the right to form a union. This decision concluded a seven-year legal battle initiated by the Independent Workers’ Union of Great Britain (IWGB) over the employment status of food courier drivers.
The Central Arbitration Committee (CAC) ruled in 2017 that Deliveroo riders did not meet the definition of "Workers" under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA). In December 2023, the Supreme Court dismissed an IWGB appeal against the CAC's decision, affirming that Deliveroo drivers do not have collective bargaining rights. Collective bargaining rights are significant for the gig economy, enabling trade unions to negotiate agreements with employers on behalf of workers, covering aspects such as working conditions and fair pay.
The IWGB argued that Deliveroo riders should be covered by Article 11 of the European Convention on Human Rights (ECHR), which guarantees freedom of assembly, peaceful association, and the right to form trade unions. However, all courts, including the Supreme Court, agreed that Article 11 did not extend to those outside an employment relationship. The Supreme Court emphasised that Deliveroo's arrangement with riders was "fundamentally inconsistent with any notion of an employment relationship."
The judgment highlighted key aspects, such as riders having the "unfettered right" to have substitutes and the flexibility to choose their working hours. Deliveroo's acceptance of riders working for competitors was also noted. In a typical employment relationship, exclusivity clauses often prevent employees from working for direct competitors. The Supreme Court affirmed the CAC's rejection of the application for statutory recognition, stating that Deliveroo riders were ineligible for trade union recognition under Article 11.
Beyond legal aspects, gig workers' dissatisfaction with low wages is exacerbated by the risk of exposure to modern slavery, as noted by the App Drivers and Couriers Union. A 'Fairwork UK Ratings Report 2023' revealed that only Pedal Me and Getir could reasonably demonstrate meeting the minimum wage requirement. Uber Eats, Deliveroo, and Bolt were ranked 0/10 and 3/10 and 1/10 respectively, indicating inadequate pay practices. Fairwork emphasised that algorithmic opacity, coupled with the absence of a pay floor, contributes to pay unpredictability. Most platforms (10 out of 12) failed to meet Fair Pay principle thresholds. The report highlighted that platforms incur no cost when workers are logged in but unpaid unless actively engaged in tasks. Workers face constant uncertainty in figuring out algorithmic decision-making rules, compounded by dynamic pricing models, further affecting pay predictability. Adding to gig workers' challenges, punitive measures were initiated in early 2023, with sixty fast-food delivery riders arrested in a Home Office crackdown for offenses such as possession of false documentation and illegal work. This may lead to a lack of trust between delivery workers and authorities, unable to work constructively together.
Despite Uber's recent announcement of full-year profits in 2023, driver pay data from Rodeo showed a decline between 0.3% and 6.1% for Deliveroo, Uber Eats, Stuart, and Just Eat. When considering inflation, real-time pay fell for workers fell between 8.4% and 13.8%.
The revelation from the 'Fairwork UK Ratings Report 2023' further illuminates the stark reality that many platforms fall short of providing fair compensation. Algorithmic opacity, coupled with the absence of a pay floor, contributes to a volatile environment for gig workers, leaving them grappling with uncertainties in pay and job availability.
As Uber celebrates its financial success, the contrast with declining pay for drivers raises critical questions about the sustainability and ethical dimensions of gig economy practices. The call for collective bargaining rights, as echoed by the Independent Workers' Union of Great Britain, resonates not only as a legal demand but as a plea for dignity, security, and a fair share of the prosperity generated by their labour.
In navigating the future of the gig economy, it becomes imperative for stakeholders—platforms, regulators, and the wider public—to engage in constructive dialogue and action. Striking a balance between innovation, profitability, and the welfare of gig workers is a challenge that demands thoughtful consideration and a commitment to fostering an equitable and humane gig economy.
By Sumaiyah Patel
