The economy today
Deliveroo trial: the platform model under threat
Audio 04:19
A Deliveroo courier in August 2017. © AFP / File
By: Alexis Bedu Follow
3 mins
Today we are interested in the model of certain digital service platforms because this Tuesday, a judgment is eagerly awaited in France concerning the company Deliveroo specializing in the delivery of meals.
She is suspected of concealed work.
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What is reproached to Deliveroo is to have made deliverers work as independents when they should have been employees.
In any case, this is what the prosecutor concluded in her indictment, explaining that there was indeed a relationship of subordination between Deliveroo and the more than 2,000 deliverers working for the platform at the time of the facts judged, it that is to say the period between 2015 and 2017. Deliverers monitored by geolocation, subject to numerous obligations and pressure from Deliveroo.
This is in any case what emerged from the testimonies heard at the bar during this trial.
A system for connecting customers, restaurants and delivery people
A triptych which is done via an algorithm which is also the same in all countries.
This algorithm is inapplicable without the flexibility of the deliverers, who can be mobilized at any time according to the flow of orders.
The labor inspectorate equates certain instructions from Deliveroo to pure and simple orders.
This self-employed status would therefore be absolutely inappropriate, and would allow Deliveroo to make very significant savings in social security contributions.
Ursaff is also claiming 9.7 million euros from Deliveroo France, the French subsidiary of the British group.
A model that begins to falter
In France, this judgment could clarify case law that is currently very vague.
Judgments to the Prud'hommes having been rendered in both directions, sometimes giving reason to the company and sometimes to the deliverers, some States have decided to legislate.
In Spain, Deliveroo ceased its activities last November after the adoption of a law giving couriers the status of employees.
Result: increased costs for the company, which can no longer match the prices of the competition and which therefore prefers to close.
In the United Kingdom, it is yet another scenario: a hybrid status of self-employed employee was adopted a year ago.
It concerns the 70,000 VTC drivers, those working for Uber in particular.
They now benefit from the minimum wage and paid holidays.
A directive proposed by the European Commission
After two years of negotiations and balance of power, this proposal for a directive provides for a presumption of employment, that is to say a reclassification as employees when there is a relationship of subordination between the worker and the platform.
To determine this, it will be enough for a company to meet two of the five criteria provided for by Brussels.
Does the platform set the remuneration?
Does she supervise the work electronically?
Does it impose working hours or the wearing of a uniform?
If the directive passes, the platforms will have to revolutionize their model.
The end of platforms?
That's what the platforms say anyway.
They fiercely oppose any significant requalification of workers based on a study by Copenhagen Economics, which predicts that such a scenario would force some 250,000 European workers to leave the sector.
In France, the company Just Eat, which had started to hire its delivery people, announced last week that it would have to cut 269 salaried delivery jobs out of the 800 existing, citing economic problems.
Because important information: these platforms Uber, Deliveroo and others are not yet in balance.
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IN BRIEF
The World Bank wants to release 170 billion dollars to deal with the crises caused by the war in Ukraine, announced its president David Malpass yesterday.
$170 billion over 15 months to help countries affected by food insecurity and those that have been hosting refugees since the start of the war in Ukraine.
Crises that significantly slow down global growth, explains David Malpass.
The World Bank now expects growth of 3.2% this year.
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