Deliveroo boss set to make £500m as many riders ‘get less than minimum wage’
runs its riders via an algorithm, called Frank, which manages deliveries using “machine-learned” predictive tech. Deliveroo claims it ensures that workers “maximise earning potential”.
But Marc Jelly, 26, from Pontypool, said on one session in July he spent almost six hours logged into the app and got only one order, from Burger King, paying £3.80. He said: “The algorithm is not explained. You’d think that it’d be on a ‘first come, first served’ basis but it isn’t.
“One person can go and collect an order, then they come back, and they’ve got an order again. Then you’ll see them again for a third time. You wait another three hours. Then the order you get is £3 minus expenses. How do you survive on that?”
Deliveroo claims the median wait time at a restaurant is three minutes, and that riders can keep the app open all day without accepting any orders. Marc said Deliveroo’s flotation was the result of increased demand in the pandemic.
He said: “The pandemic has sped up the way people use online ordering systems. They’ll be making billions.
It’s sickening.” Steven Geary, 43, said he usually earns £9.50 an hour but ends up at a “net loss” after expenses. He said: “You’re out in the bad weather, so I’ve had to spend £200 on a jacket and £120 on a helmet.
“My scooter needed new tyres, I had to replace the brake pads and get the oil filter replaced. So, I’m at a net loss.”
After delivering in South London on his bicycle, Ian Morrison, 29, borrowed £2,000 for a moped, paying £150 a month for couriers’ insurance.
Then he was attacked by eight men on a delivery and his moped stolen.
He said: “All I could think was, ‘I’ve got so many bills to pay, this moped is my income’. The insurance was third party so I didn’t get anything and, as I couldn’t work, I was in arrears.”
He claims Deliveroo’s response was to suggest that he changed areas. Ian added: “It was one of the worst experiences of my life. I still have nightmares about it.
“That’s when you realise – you aren’t an employee. You make a profit for them but when things go wrong, you’re on your own.”
The Bureau reviewed pay documents of more than
300 riders across the UK, covering 33,000 hours and more than 11,000 shifts in the 2020-21 financial year.
It calculated pay rates based on Deliveroo’s own “invoices”, which document a “session”, when a rider logged in, logged out, and the deliveries made.
But Deliveroo said: “Time logged on does not mean they are working.”
Instead, Deliveroo calculates average pay “from the moment a rider accepts a Deliveroo order until they complete the order. This is more than the national minimum wage.” The firm is hailed by Chancellor Rishi Sunak as “a true British tech success story”. But a Supreme Court ruling which found Uber drivers must be treated as workers may affect Deliveroo’s business model. Angela Rayner, Labour’s deputy leader, said: “The Supreme Court has sent a very clear message. The Government must now act to ensure all employers uphold their legal duties to the working people of this country.” Fund manager Aviva Investors yesterday revealed it will not invest in Deliveroo when it floats early next month due to the way it treats riders. TUC boss Frances O’Grady said: “Deliveroo has no excuse for not treating its workers fairly.” Henry Chango Lopez, Independent Workers’ Union of Great Britain general secretary, said: “It’s deplorable that Deliveroo has continued these practices even through a pandemic.
“Anyone investing in its business model should expect more public pressure and worker-led action.”
A spokesman for Deliveroo said: “Deliveroo riders have the complete freedom to choose when and where to work and can choose which deliveries to accept and which to reject – 50,000 riders choose to work with Deliveroo and thousands more people apply to work with us every week.
“Our way of working is designed around what riders tell us matters to them most – flexibility. These unverifiable, misleading claims from a fringe organisation who claim, at most, to have spoken with 2% of Deliveroo riders should not be taken seriously.
“Riders in the UK are paid for each delivery they choose to complete and earn £13 per hour on average at our busiest times.
“We communicate with thousands of riders every week and satisfaction is currently at an all-time high.”
You make a profit for them but when things go wrong you are on your own
IAN MORRISON DELIVEROO RIDER FROM LONDON
YV