Former Foodora deliverers in Canada obtained financial compensation of 3.46 million Canadian dollars (2.22 million euros). The deal was made between Delivery Hero, the parent company of Foodora Canada, and the Canadian Union of Postal Workers (CUPW).
In February, delivery men in Toronto and Mississauga were granted the right to unionize after a legal ruling deemed them "dependent contractors, not independent contractors." Nearly 90% of delivery people had previously joined CUPW, becoming "the first workers, whose work is governed by a mobile application, to unionize," the union said.
A business on the downward slope
The union criticized Foodora for leaving the Canadian market on the grounds that its delivery men had chosen to unionize. In fact, last April during the coronavirus crisis, the home meal delivery company declared bankruptcy and ended its activities in the Canadian market, citing a recent "intensification of competition".
Delivery Hero's capitalization reaches nearly 20 billion euros, almost four times more than when it was listed on the stock market in 2017. But the company has never been profitable since its creation in 2011 and is even seeing its losses widen. . They reached 663 million euros in 2019. Delivery Hero closed its activities in France in 2018, failing to meet the expected success.
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- Delivery
- World
- Canada
- Delivery man
- Union