Delivery pending How to drive a better instant delivery platforms world of work
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Delivery
pending
How to drive a better instant
delivery platforms world of work
© The Adecco Group
Foreword
At the Adecco Group, we aim to make the future work for everyone. This means that we are committed
to ensuring that work can be done as quickly, efficiently, and nimbly as consumers want today, with the
protections and job quality that workers also rightfully expect. The gig economy, and especially instant
delivery, is an incredibly exciting space in this context. It shows us new opportunities to serve consumer
needs and turn available work into real jobs. But the sector has been grappling with challenges regarding
workers’ expectations. In this paper, we are exploring those opportunities and challenges.
The gig- or platform economy is another illustration of the changed expectations of today’s labour
market stakeholders. It is increasingly clear though, that new expectations can only be met when all
stakeholders also take up a new set of responsibilities. At the Adecco Group, we consider such a new
set of expectations and responsibilities to constitute a New Social Contract. To achieve a New Social
Contract, we believe that governments, companies and workers need to step up in equal manner.
A successful path forward will create a new industry standard, bringing us closer to an employment
landscape that sees all workers, not just some, have access to fair pay, flexibility, and social benefits.
The solutions proposed in this paper provide a range of options for creating a more balanced
relationship between delivery platforms and affiliated workers. While the approaches vary, there is
unanimous agreement between experts that the way forward must create a comprehensive solution that
can be applied on a national scale, rather than the ad hoc, company-specific court rulings that have been
seen to date, applying to some workers in a given market, while leaving out others who are essentially
performing the same job. The win-win solution will be based on inclusive conversations, a comprehensive
understanding of platform work and the stakeholders it affects, as well as an open mind to finding
flexible solutions that work for couriers. Only then can we truly make the future work for everyone.
—Alain Dehaze
CEO of the Adecco Group
© The Adecco Group | Delivery pending 2
Table of
Contents
4 I. Executive Summary
5 II. Introduction
6 III. What are delivery platforms?
The definition
he delivery platform business model,
T
value chain and competitive landscape
8 IV. The Platform-Worker Relationship
Workers’ perspective
Platform perspective
Worker-platform relationship
A deeper dive: contracts,
algorithms, and intermediaries
13 V. Delivery Platforms and Workers in Key Markets
Case study: Delivery platform workers in Spain
18 VI. Regulating and Legislating Delivery Platforms
The state of the policy conversation
The policy conversation: who to include?
Solutions: Reflecting today’s flexible world of work
The way forward
24 VII. Annex
Terminology and Abbreviations
Market Overview: Platform Workers
and Regulatory Frameworks
References
© The Adecco Group | Delivery pending 3
I. Executive Summary
Over the last 15 years, ongoing globalisation and digitalisation of many industries have contributed to a proliferation
of digital labour platforms, and instant delivery platforms in particular. As such, this rise in number of both delivery
platforms and affiliated workers has resulted in a more urgent need to regulate the relationship between them.
Against this backdrop, this paper analyses the delivery platforms’ business ecosystem through the lens of digital
freelancers’ working conditions, with the aim to identify and provide recommendations for solutions to help promote a
responsible and flexible model that creates a fairer relationship between delivery platforms and affiliated workers.
This paper also includes a market-by-market analysis of the policy conversation around delivery platform workers’
conditions, and draws on the Adecco Group’s decades of expertise in offering flexible work via the agency work model.
For the purposes of this paper, the focus on digital labour Given the inflexibility of today’s employment regulations,
platforms is narrowed down to specifically examine policymakers now need to address the complex
instant delivery platforms, such as UberEats, Glovo, question of how to redefine labour models for the
Delivery Hero, and Just Eat, among others. These delivery digital age, including those for instant delivery work,
platforms act as an intermediary between the end user that provide workers with more options for economic
(customer), a supplier (such as a restaurant, grocery store, stability, professional upward mobility, and certainty in
or other type of merchant), and the worker affiliated with their future. Effective solutions can include decoupling
the platform (rider or courier), charging a commission employment status from access to benefits, collective
to put the three parties in contact for a service to be bargaining or cooperatives for negotiating platform
performed. Within the instant delivery business model and workers’ conditions, flexibility in contracts and
the value chain of the delivery process, operating margins employment models, government subsidies for platform
are thin, often resulting in lower profits for merchants and workers’ benefits, or leveraging workforce solutions firms
less disposable income for delivery workers. to allow platform to hire workers on a more flexible basis
without becoming their direct employers.
For platform workers, the most commonly cited benefits
are flexibility in working hours, low barriers to entry, and The solutions proposed in this paper provide a range
easy access to income and work experience. While delivery of options for creating a more balanced relationship
riders may not see this work as a long-term career, they between delivery platforms and affiliated workers.
often find the work to be unpredictable and earnings Achieving this progress for today’s delivery platform
heavily dependent on working parameters set by the workers will require critical self-reflection from all parties
platform. As independent contractors, workers also typically involved — platforms, policymakers, workers, unions,
lack social benefits and protections that accompany direct associations and multilateral organisations. Without a
employment. There is currently a lack of a consistent cohesive approach and fair debate, workers will be left
regulatory framework that sets parameters for a “fair” with the existing and fragmented policy approach that in
relationship between the platform and affiliated workers. the long run ends up being a lose-lose for all.
The current state of the policy conversation varies
by country and has typically seen national or state-
level courts making concrete legal decisions related to This paper’s recommendations
the platform-worker relationship, specifically workers’ for the way forward are:
employment status, on a case-by-case or company-
specific basis. The main considerations for policymakers 1. Social protection as the baseline for all
come down to conditions of platform work, specifically forms of (platform) work
job and income security for workers, as well as access 2. Clear criteria are needed to define
to benefits and social protections, career development worker status
opportunities and the right to negotiate contracts.
3. The price for platform services should
Creating a more balanced relationship between delivery reflect the cost of social protection
platforms and affiliated workers, while at the same time The Adecco Group considers that there are
maintaining business growth and worker flexibility, will many opportunities for decent flexibility,
require an inclusive approach that results in a productive either in employment — including agency
conversation at the policy level. Only this approach to work — or in self-employment, and the
the policy discourse, featuring riders, unions, platforms, recommendations above should be key
workforce solutions providers and academia, will create considerations in the ongoing policy debate.
a mutually beneficial outcome that produces win-win
scenarios for both platforms and affiliated workers.
© The Adecco Group | Delivery pending 4
II. Introduction
Over the last 15 years, ongoing earnings, and low job security.
globalisation and digitalisation of In recent months, courts and
many industries have contributed governments across markets have
to a proliferation of digital labour set out to regulate the relationship
platforms and delivery platforms (DPs) between digital labour platforms
in particular. The COVID-19 pandemic and workers. However, the absence
has certainly exacerbated this trend, of best practices and models
with an unprecedented number of references have generated a
of delivery platforms being used kaleidoscopic regulatory framework
to fulfill essential needs that could across markets, whereby in some
not be carried out in-person due to countries workers affiliated to a
lockdowns and restrictions across specific platform have acquired full
the world. For the end consumer, employment status while others,
delivery services provide benefits operating for the same platform
such as speed in access to goods but in another market, are still
and services, convenience, and often, considered self-employed.
low prices. At the same time, beyond
their role as service providers, Against this backdrop, this paper,
delivery platforms have also become based on research conducted
an essential source of revenue for through primary sources, high-level
many workers who lost their jobs expert interviews and literature
because of the pandemic, want more reviews, intends to map and
flexibility in their work, or rely on analyse the delivery platforms’
platforms for additional income. business model, working conditions
for riders and couriers, the
contractual relationship between
delivery platforms and affiliated
“The rising number of both workers, as well as the regulatory
delivery platforms and frameworks that have emerged
affiliated workers have across global markets where this
resulted in a more urgent need policy conversation is gaining
to regulate digital freelancers’ traction. The aim of the paper is to
working conditions.” identify best-practices and provide
recommendations for solutions
to help balance the social and
Vijay Jonnalagadda, Global Head of Sales
and Tech Talent Solutions at Modis economic risks faced by delivery
platform workers with the benefits of
platform work through a responsible
Although working arrangements vary and flexible model that creates a
on a platform and market basis, many fairer relationship between delivery
people working through DPs are platforms and affiliated workers. In
classified as self-employed and thus this aspect, the paper will also draw
have a high level of work flexibility, on the Adecco Group’s decades of
but also have limited access to expertise in offering decent flexible
social protection, unpredictable work via the agency work model.
Delivery platforms
are an essential source of revenue for many workers
who lost their jobs because of the COVID-19 pandemic.
© The Adecco Group | Delivery pending 5
III. What are
delivery
platforms?
The definition those operating in something like the use of technology that allows the
the hospitality sector, where work interaction between end customer,
For the purposes of this paper, the is generally not task-based, but merchant and driver to be cheaper
focus on digital labour platforms will hour- or shift-based. While specific and faster for the consumer, and
be narrowed down to specifically payment structures for workers vary light on labour cost for the platforms
examine instant delivery platforms by platform, driver or courier pay is facilitating the process.
(DPs). These delivery platforms act typically task-based, and can include
as an intermediary between the end a flat “per-order” payment rate, or a While the definition of “delivery
user (customer), a supplier (such as commission payment based on the platforms” in the previous section
a restaurant, grocery store, or other value of the order delivered. is accurate, it is important to note
type of merchant), and the worker that platforms don’t merely connect
affiliated with the platform (rider The delivery platform people and businesses. As delivery
or courier). The delivery platform business model, value chain platforms have become more
charges a commission to put the three and competitive landscape commonplace and widely used, the
parties in contact for a service to be platform’s role as an intermediary
performed, in this case the delivery of The delivery platform model is has evolved to be a much more
a product such as a meal or groceries. a unique example of the hybrid active participant in the relationship
economy that combines physical between the consumer, the supplier
Instant delivery platforms are and digital services that are and the delivery worker. Often,
different from other online web- executed as a function of supply and the platform is doing much more
based platforms, where tasks or work demand. According to Mick Rix, a than just connecting these parties,
assignments are performed digitally representative of the British Trade which does not neatly fit into the
and remotely (for example legal or Union GMB, the delivery platform platform’s narrative of merely being
creative services). Instant delivery business model “is just a better way a “connector.” As such, platforms
platforms have a “location-based” of connecting people in terms of are not just providing a technical
nature, which means that tasks are services and supply,” which “has solution for the purpose of delivery,
carried out in-person at a specified essentially replaced a phone call.” but feel they also need to have some
physical location by workers as What makes the model particularly degree of accountability for the
an on-demand service. This also innovative, as Tom Hayes, Executive quality of the delivery service that
differentiates these platforms from Director of BEERG, highlighted, is the end customer experiences.
© The Adecco Group | Delivery pending 6
This level of accountability reflects (a meal), but also provides Digital Working Society, a think tank
how the business model for logistical services (food in the German Federal Ministry
operating delivery platforms has delivery) and is responsible for of Labour and Social Affairs, the
evolved over time: the quality of the service that platforms’ quest for profitability can
the end customer experiences. impact both the platform and the
— The “first generation” model Under the second model, workers, “due to high competition,
served more as a marketplace platforms also regulate the which might push platforms to
that connected the service prices of the services provided lower their prices at first with the
and the customer, without the to consumers. aim to establish a monopoly, and
responsibility for the quality of to then raise their price again and
the final service performed or Under the “second generation” lower the workers’ fees or wages to
goods delivered. For example, Task model, a major challenge for increase profits.” Often times, this
Rabbit is a platform that connects delivery platforms is that business also results in higher commission
a person looking for a specific margins are typically low, and charged to the merchant on the
service (fixing a leaking pipe) and profitability becomes a question value of the final goods delivered.
the service provider (plumber). of reaching a high market share The value chain of the delivery
threshold. However, the delivery process, which can include the
— The “second generation” platform market is fragmented, platform, fleet management
model, which is the model competitive and lacking in customer company, staffing firm, technology
that most delivery platforms brand loyalty, which makes it provider and payroll operator,
now operate through, is one in more difficult for platforms to means operating margins decline,
which the delivery platform not reach profitability. According to often resulting in lower profits for
only connects the customer Robert Räuchle, head of policy merchants and less disposable
to an end service or product development in the Policy Lab income for delivery workers.
© The Adecco Group | Delivery pending 7
IV. The Platform-Worker
Relationship
According to Jochem de Boer, a former representative from the World Employment Confederation, platforms
have “absurdly leveled the playing field” in making interaction, intermediation, matching and accessing the market
extremely easy for all parties involved — consumers, merchants, and workers. As use of delivery platforms has
become second nature to consumers across the globe, the delivery platform business model, specifically the
relationship between the platform and delivery riders or drivers, has become a growing topic among the public,
media, international organisations, the business community, and regulators. As part of this debate, it is important
to examine this relationship, including benefits and drawbacks, from the perspective of both sides.
Workers’ perspective
There are several commonly cited benefits for workers affiliated with platforms:
Flexibility: Delivery platform work provides drivers and riders with the ability to determine
their own working hours to fit their needs and schedules without making rigid commitments.
This benefit is especially important for those who cannot work traditional hours, such as parents
or students. This is also why for many, delivery work is not a long-term career, but rather a
limited-time opportunity. Women especially are turning to app-based gig work because of its
flexible nature. According to recent surveys, 80% of women on DoorDash and 50% of women
on UberEats said that ridesharing or delivery platforms provided them with the flexibility they
could not get from other jobs.1 Workers are also able to shift working between competitor
platforms, which could rarely happen outside of the gig economy model.
“Platforms give some opportunities in terms of flexibility, and they often
provide additional income to workers. I think, this is an opportunity
especially for students, for example. At the same time, we must strike a
balance between the risks and opportunities of this new kind of work.”
Sylvie Brunet, Member of the European Parliament
Low barriers to entry: Delivery platform work has a low skills and qualifications requirement;
riders and drivers primarily need the ability to ride, drive and use a navigation app to complete
the work successfully. The process for applying and being accepted to work on a platform is
typically quick, simple, and provides workers with easy access to earning opportunities. Delivery
platform work is also inclusive in its nature and can provide income to those who are often
excluded from traditional skilled or professional jobs because of language gaps, lack of skilled
qualifications, age, and legal or migration status.
Access to income and work experience: Delivery work is often a source of supplementary
income for those who already have a full-time job, or for workers who find themselves out of
work unexpectedly. This was especially true during the COVID-19 pandemic, when many lost
their jobs and had to turn to alternative sources of income while demand for delivery platform
services spiked due to lockdowns.
© The Adecco Group | Delivery pending 8
According to a professional from the DP sector, the disadvantages faced by
delivery platform workers “are related to the non-standard nature of the work”.
Irregular hours, unstable income and unpredictability: Even
when a rider signs on to work, income is not guaranteed as
there are peaks and valleys in demand and some working hours
are better compensated than others. Peak demand hours can
be scarce, and according to a representative from Spain’s
Asoriders, “there are almost never enough deliveries available to
everyone that wants to be online at a given time.”
Platform dependency: According to a representative from the
OECD, unlike traditional independent workers, workers affiliated
with digital platforms can become completely economically
dependent on a single platform company. In this respect, they
do not always enjoy the full freedom of traditional independent
workers, as the platforms can change working conditions, alter
percentage of their revenues or impose new conditions with
very little notice for workers.
Lack of benefits: Unless drivers and riders are directly
employed by the platform, as independent contractors they lack
the social security and protections, such as sick leave, vacation
pay and access to pensions, that accompany direct employment.
Independent contractors need to organize their own benefits,
but may sometimes choose immediately disposable income
over investing in social protection for their future. According
to a representative from Delivery Hero, platforms “would love
to do more and have more leeway to offer more benefits, but
some regulatory frameworks are making this very difficult.” Legal
frameworks, such as in markets like the U.S., that allow for legal
action against companies for providing only certain benefits
to workers only further discourage platforms from increasing
benefits for riders and drivers.
Lack of a consistent regulatory framework: Current
employment regulations are primarily designed for full time,
direct employees, and delivery platform workers’ participation in
the labour market is not fully recognised by existing regulatory
frameworks. This leads to many delivery platform workers
finding themselves in the “grey zone,” described by the OECD
as “between dependent and self-employment,” leaving them
without proper access to benefits and social protections.2
Limited earning opportunities: In addition to the challenges
listed above, riders and drives are also responsible for affiliated
costs of their work, including paying for gas and car insurance,
as well as the depreciating value of the tools of their work
(vehicle or bike). DP work also offers fewer opportunities for
professional training and career perspectives that can advance
workers in their earning capacity. According to Spain’s Asoriders,
an association representing delivery riders, “the worker turns
out to be the weakest link in this chain of work. They do not
decide the price of their labour; they must provide the tools to
work; even when hired, they do not have a stability in the work
because of the market supply and demand shifts.”
© The Adecco Group | Delivery pending 9
Platform perspective
For platforms, there are two core benefits of engaging with riders and drivers:
Ability to capture large swaths of labour market at a low cost: Enabled by technology, platforms
can both quickly create jobs and access the labour market to fill those jobs. According to a former
Postmates executive, the platform saw an 84% spike in applications to join the platform when
COVID-19 shut down the economy and many were out of work. Even in times of crisis, platforms
can generate income with minimum investment and risk due to the currently autonomous nature
of the worker-platform relationship.
Elastic nature of labour supply: This easy and inexpensive access to the labour market allows
platforms to stay nimble in responding to peaks and valleys in demand. Platforms can have
a sizable fleet of workers at their disposal without generating additional expenses by simply
pushing notifications to workers and incentivizing them to get online.
As mentioned earlier, one of the biggest challenges for platforms is keeping their business sustainable and making their
operations as efficient as possible to approach the profitability threshold while also paying workers a considerable
wage. To be successful, platforms must also keep all players in their ecosystem happy: riders need to feel that they are
being paid well, merchants and restaurants that they are getting a fair commission, and that the platform is approaching
profitability. The highly competitive nature of delivery platform work often results in bargain offers and a low price for
the end consumer, the cost of which is absorbed by the platform, the merchant and the delivery driver. Furthermore,
promotions are unilaterally determined and managed by the platform, giving drivers or restaurants little choice but to
adhere to the new price.
Worker-platform relationship 2. By using algorithms, platforms As counter arguments, parties
have access to a significant that are in favor of the current
The discussion of delivery platform amount of data and can acquire a arrangement between delivery
work, its benefits and challenges is a dominant position over workers. platforms and workers point to:
natural transition to a core question The algorithm determines how
about the relationship between the and when a worker has access to 1. Fair pay. Platform representatives
delivery platform and its affiliated earning opportunities and exerts a point out that worker
workers: Is it fair? relatively high level of control over compensation is often higher than
a worker’s earning potential. regulated minimum wage rates
In most discussions, this question and comes with the additional
of fairness primarily relates to 3. Contractual arrangements cannot benefit of flexibility. However, most
worker compensation and benefits. be negotiated as most delivery platforms admit that there is room
According to critics, the relationship platform workers are considered for improvement in safety nets and
is unfair for 3 main reasons: self-employed without contracts. training opportunities that could
As self-employed they do not have be provided to drivers and riders.
1. Most of the risk is transferred rights to collective bargaining, but
to workers. Platforms’ revenue in the platform economy, they 2. Easy access to earning
is typically not affected by the also do not have the freedom to opportunities. Advocates of
number of riders or drivers who set their own rate, as most self- platform work point out that
are working on a given evening; employed workers can. platforms create work that allows
however, the more workers are drivers to elevate their household
competing for a finite number income through easily accessible
of deliveries, the lower their opportunities that would not have
income can be. otherwise existed without the
platforms themselves.
© The Adecco Group | Delivery pending 10A deeper dive: contracts, would only create more confusion of the platform. The algorithms
algorithms, and intermediaries between employment statuses and deployed by platforms can be
further expand the legal grey zone managerial and interventionist in
There are typically two types of within which many platform workers nature, and according to Sylvie
contractual arrangements for are already operating. According Brunet, Member of the European
delivery drivers and riders working to Christian Poppe, global public Parliament, “it is difficult to have
through platforms: policy manager with Delivery Hero, transparent algorithms and there
“We are very much convinced that is an information imbalance” that
— Self-employment: The worker the freelance model is generally the can negatively affect the worker.
typically does not have access to right model to conduct operations Platform workers who do not have
social security benefits; workers successfully and sustainably, but the autonomy to accept or reject
also do not have the ability to we believe that in a lot of markets assignments, organize their work in
decide the price of their work, there is not enough room to a way that fits their lifestyle or the
but instead they can accept or complement today’s freelance freedom to work for more than one
decline individual tasks as they model with additional benefits.” platform are considered “bogus self-
see fit. This is the contract model More progressive ideas are needed employees,” and should legally have
that is typically used by most to enable platforms to provide the same protections as employed
delivery platforms. affiliated workers with more safety workers. However, according to
nets and benefits, while maintaining platform representatives, the degree
— Employed: The worker is fully their own flexibility and efficiency to of control that platforms have over
entitled to worker benefits be profitable. Most recently, Glovo workers is not unreasonable, as the
according to national regulations; announced a “Couriers Pledge” platform is ultimately responsible for
the worker is also guaranteed a set initiative, which will create clearer the end customer experience and
income based on time worked — pay structures and provide social quality of service they receive.
but workers are expected to work rights for the company’s couriers,
for a pre-agreed amount of time. including expanded insurance
This is the approach employed by coverage for accidents, sick leave,
Just Eats’ delivery model Scoober, and parental leave. The company
which directly hires riders through has noted that it will be logistically
a contract that grants an hourly difficult to implement the pledge in
salary, employment insurance, all markets where it operates due to
social security according to the varying regulations from country
the local legislation, free use of to country.
equipment of vehicle allowance, The idea of new
and the company’s signature When discussing contracts, the
orange clothing. question of platform control classifications
over its workers is one that has
for workers has become
There is an in-between model been important in defining the
emerging in markets like the U.K., level of employment and worker controversial
in which delivery drivers are autonomy. Courts have argued
across markets.
considered workers and get access that the more control a platform
to certain rights and social securities, has over a worker — for example
which has created the controversial through its algorithm, which often
question of new classifications determines a driver’s opportunity
for workers. According to critics, for work — the closer that rider or
introducing a new classification courier is to being a direct employee
© The Adecco Group | Delivery pending 11As such, a potential way to mitigate for the delivery platform from
“bogus self-employment” has been a workforce management
by using intermediaries, such as perspective. These services
workforce solutions providers, to can include driver screening,
navigate the relationship between HR-related onboarding to the
the platform and its affiliated platform, and payroll processing.
workers. Through intermediaries, In this scenario, the platform is
riders or drivers continue to work the employer of record and is
for platforms while employed, responsible for providing benefits
with certain benefits, by another to affiliated workers. However,
company. These companies several time-consuming workforce
already operate within a regulatory management tasks are outsourced
framework that aligns with the scope to HR experts.
of employment they are providing,
including wage protections, and 3. Full outsourcing model: With
avoids the question of whether the full outsourcing model, the
a rider or driver is a platform worker’s employment journey is
employee or not (they are not). fully taken on by the workforce
solutions firm, including
This arrangement removes the legal recruitment and selection, billing
grey area mentioned earlier and and payment, as well as benefits
gives couriers the opportunity to such as pensions, paid time off, and
work within parameters dictated by training opportunities — similarly
national law that agencies already to the flexible placement model. In
operate within. According to Vijay this scenario however, the delivery
Jonnalagadda, Global Head of platform has a contract based
Sales and Tech Talent Solutions on set performance indicators
at Modis, within this regulatory with the workforce solutions firm,
framework, which differs by country, which in turn has to make its own
there are three possible contract assessment of how and when to
arrangements between platforms deploy a certain number of riders.
and affiliated workers, with a
workforce solutions firm acting as According to supporters of the
an intermediary: intermediary solution, staffing
agencies present an opportunity
1. Flexible placement: This to clarify the relationship between
follows a traditional agency platform and workers and can play
work arrangement in which the a central role for some location-
workforce solutions firm employs based platforms. Workforce
drivers that are then placed on solutions agencies have experience
assignment to a platform (or a in providing employment and
fleet management company human resource management, and
on behalf of the platform). The already specialise in the flexible
platform indicates the number solutions that both platforms and
of manhours it needs which are workers are looking for. This use of
then provided by the workforce intermediaries is already widespread
solutions firm. Workers are directly in the Middle East for fleet
employed by the workforce management, as well as in China,
solutions firm, but benefits are where platforms rely on agencies to
billed back to the platform or fleet provide their workforce. While the
management company. solution will vary depending on the
regulatory framework in countries
2. HR and data processing services: of operation, it is one that would
Under this contract, the workforce remove the administrative burden
solutions firm does not employ from delivery platforms while
the rider or driver, but instead allowing them to engage with drivers
provides a support structure and riders in a more transparent way.
© The Adecco Group | Delivery pending 12V. Delivery Platforms
and Workers in
Key Markets
The COVID-19 pandemic has had uneven effects on the gig economy,
with delivery platforms gaining unprecedented traction and becoming a
fundamental service in North America, Europe and Asia amid lockdowns and
limited movement for many. Data shows there was a rapid growth in demand
for delivery platform services.
22% The flexible nature of delivery work makes determining the exact number of
workers affiliated with platforms at the global level almost impossible. The
of adults in Europe and
graphic below provides an overview of available data on gig and delivery
North America performed
platform delivery work
platform workers.
from 2015 to 2019.3
Despite this growth, the status of workers affiliated to a delivery platform is
contested for multiple reasons, especially because of the lack of social security
1 in 10 and protections. Globally, legislative solutions, where available, lean towards
reclassifying digital platform workers as platforms’ direct employees, rather
of the EU bloc’s labour than freelancers — although court rulings are not unanimous and may even
market have worked
contradict each other across jurisdictions. But this goes only so far; some
through digital platforms.4
jurisdictions are experimenting with a special hybrid status for delivery workers,
and many others have simply not yet started to consider the issue fully.
11%
of the EU workforce provided
a service through digital
650M
platforms at least once.4
Of that 11%, 3 million people
rely on digital platforms
for their primary source 2010 142
of income, 9 million as 2020 777
their secondary source,
and almost 7 million as an 150M
111M
occasional source of income. 24.8M Number of digital platforms,
concentrated in these locations:
China EU US UK US (29%), India (8%), and UK (5%)7
55 million People reached by food
people consider delivery services in 20206
themselves gig workers
in the US, representing
34% of the workforce.5
183%
increase of food
deliveries in Southeast
Asia in 2020.6
© The Adecco Group | Delivery pending 13Platform Workers: Global Highlights
7
9
2
1
8
4
3
5
6
1 European Union: European regulation on 6 Chile: A special regulation recognising platform
platform work is expected by the end of 2021 by workers as employees has been recently approved
the European Commission, granting platform and is now under discussion in the Senate.
workers access to some social protections. 7 North America: Numerous legal fights are
2 United Kingdom: Uber drivers are classified as taking place to classify delivery platform workers
workers, with rights such as a minimum wage, as employees.
holiday pay and a pension plan. United States: Delivery platform worker
8
3 India: Minister of Finance has asked to extend conversation gaining traction in states like
social security benefits to platform-dependent California, Massachusetts and New York.
workers, which has yet to be enforced.
9 Canada: Consultation launched for a bill to
4 China: Government agencies have published new provide forms of social security and protection to
guidelines to protect riders’ basic labour rights. workers affiliated to platforms.
5 Latin America: Delivery platforms have
grown more than 30% in 2020, reaching a
value of $6.8 billion.
In the European Union, according well as granted the possibility for during the mandated two phases of
to Tom Hayes, the Delivery collective bargaining.8 Moreover, to consultation in 2021, including on
Platforms labour model “is coming facilitate the correct classification issues such as employment status,
to an end [as] European member of platform workers, the Parliament benefits, automated management
states are practically all saying that agreed that the burden of and general working conditions.
these workers are employees”. proof should be reversed: when According to Menno Bart, Senior
Although labour regulation is challenged, it should be up to Public Affairs Manager with the
normally a national competence, platforms to prove when there is no Adecco Group, “the legislation will
the EU is expected to follow this employment relationship rather than have to take into consideration the
line. According to a European leaving it up to individual workers Parliament’s approach, but also find
Parliament initiative report adopted to prove there is an employment common ground and harmonise
in September 2021, workers affiliated relationship. A European regulation priorities across all EU member
to platforms should have access on platform work should be states. Doing so will require an open
to social protection, a healthy and published by the end of 2021 by the mind on the side of policymakers.”
safe working environment, fair and European Commission, which has
transparent working conditions, as collected input from social partners
© The Adecco Group | Delivery pending 14According to a platform
representative, the EU path presents
a risk of overregulation, which will
result in less offerings on platforms At time of writing, Portugal is the latest
and less opportunities for workers country considering legislation similar to
and retail partners to be connected Spain’s Rider Law, with a bill that would
to new income streams. This could assume a worker to be directly employed
“cripple the industry and make it Portugal by the platform when there is evidence of
regress back to the ‘generation one’ a relationship between the platform, the
marketplace model,” which is already delivery worker and the end customer.
happening in Spain as a result of
the new Rider Law that mandates
direct employment for platform
delivery workers. Under similar laws,
restaurants could once again be
responsible for directly employing
delivery drivers, which most retail In countries like the United Kingdom, Integration praised digital platforms
and restaurant partners do not want change is happening on a company- for generating new, more modern
to, and cannot afford to do. by-company basis. In March 2021, and flexible forms of employment
Uber reclassified approximately and entrepreneurship, public and
70,000 of its drivers after a Supreme political debates for introducing
Court ruling, granting drivers more stringent regulations are
workers’ rights such as a minimum taking place.11 In India, where an
wage and holiday pay. In September average of 10 million workers are
2021, the company also announced affiliated with delivery platforms, the
In the last five years, that it would begin contributing 3% Supreme Court has filed a litigation
the number of adults of a driver’s earnings into a pension presented by the Federation of
in England and Wales plan. However, not all platforms are App-based Transport workers (IFAT)
working for gig economy following suit. According to GMB in October 2021, maintaining that
companies has reached National Officer Mick Rix, most DP workers are employees and
British citizens working through should have access to social security
4.4 million platforms still don’t have access to benefits. The litigation comes after
an increase from 6% benefits and forms of social welfare. a statement made by the Minister
in 2016 to almost To date, while one third of British of Finance in February 2021 to
workers have some experience of extend social security benefits to
15% in 2021 working at least once a week on a platform-dependent workers, which
of workers paid by
platform, the Independent Workers’ has not yet come into force. In
platforms such as Union of Great Britain (IWGB) has China, where delivery platform such
reported that the number of platform as Meituan can count on 3 million
Uber, workers enduring forms of abuse is affiliated workers delivering up to
on the rise, with 9 out of 10 reporting 27 million food orders per day, the
Deliveroo to have suffered physical assaults, State Administration for Market
and incidents, or harassment at work.10
According to Rix, what the U.K. is
Regulation (SAMR) and six other
government agencies have published
Amazon lacking at the moment is the political new guidelines to protect riders’
Flex. will to create change. While he does
not think a new status to define
basic labour rights. The Guidelines
call for online platforms to ensure
gig workers is necessary, political their affiliated workers earn a decent
forces, such as a body directed by salary, above the country’s minimum
Within this time
the Treasury, “could intervene at any wage, are freed from unreasonable
frame, the proportion
of the workers
time to sort things out and apply demands placed upon them by
carrying out platform an existing criterion that would algorithms and have access to social
work at least once a distinguish direct employees from security and a place in a union.
week has more than self-employees.” The Guidelines seem to respond
to a social protest in China called
quadrupled In the Asia Pacific region, the Tang Ping, meaning “lie flat,” against
regulation of DP workers’ status is the precarious conditions and
in delivery and driving.9
more kaleidoscopic than in the EU. long working hours faced by many
Although the Asia Development Chinese workers.
Bank report on Asia Economic
© The Adecco Group | Delivery pending 15In Latin America, the COVID-19 Proposition 22 (Prop. 22), officially the US approach when it comes
pandemic allowed delivery platforms known as the “App-Based Drivers to regulating the gig-economy.
to grow more than 30% in 2020, as Contractors and Labour Policies In spring 2021, the government
reaching a value of 6.8 billion U.S. Initiative,” was approved in California launched a consultation for a bill
dollars. The delivery platform by 58% the citizens. The measure to provide forms of social security
market is expected to grow, even countered California Assembly and protection to workers affiliated
more, with only 12% penetration in Bill 5 (AB5)14 that mandated gig to platforms and Erin O’Toole,
the region and huge competition in workers be classified as employees Leader of Canada’s Conservatives,
the local ecosystem, where once- and instead formalises gig workers’ has proposed ensuring access to
startup companies such as iFood status as independent contractors. employment insurance benefits for
or Rappi have now become giant The measure was backed by many workers affiliated to platforms.
players.12 Rappi is also developing platform companies such as Uber,
services apart for food delivery, Lyft and Doordash among others, Most recently, to reflect the global
while iFood has recently merged with a record investment of up to conversation about workers’ rights,
with Domicilios, becoming one of $200 million spent for the ballot the G20 announced an agreement
the biggest companies in the region. initiative. However, in August 2021, on social protections in today’s
To date, due to the lack of specific a court judge ruled the measure changing world of work, including
labour legislation and clear political unconstitutional. As of writing, those working through digital
responses, the definition of the Prop. 22 is still effective, with its platforms. While the text of the
employment or self-employment proponents appealing the judge’s agreement was initially agreed to in
status of DP workers has often been ruling.15 The delivery platform-worker June 2021 at the Labor Ministers’
left in the hands of Courts across conversation is also gaining traction Summit, it is now an official annex
Latin America. However, in Chile, in states like Massachusetts and New to the G20 leaders’ communique,
a special regulation on gig workers York, both of which are aiming to released in late October 2021. The
has been recently approved by the introduce additional protection for communique states the G20’s aim
Chamber of Deputies and is now platform workers. is “to allow all persons to benefit
under discussion in the Senate.13 The from the employment opportunities
law recognises DP workers as platform In Canada, following pressure from offered by digital platforms while
employees, providing them with access social parties, Uber has proposed promoting decent work and access
to social security and protection. the development of a social fund to adequate social protection for all,”
to cover its affiliated workers’ including by improving regulatory
In North America, numerous legal retirement, life insurance, dental care frameworks, promoting access to
fights are taking place to classify and education benefits. Such benefits benefits, and avoiding competitive
DP workers as employees. In the will depend on the affiliated workers’ disadvantages for both workers and
United States, according to a reaching the platforms’ working hours employers. While the statement
former platform executive, “state threshold, and payment would be may not lead to immediate
and federal authorities have not proportional to the number of hours implementation, the language serves
yet updated the social safety net worked.16 However, the social fund as a clear indicator of the direction
or labour laws for a new reality was perceived as way to overcome the global conversation is heading in
where millions of Americans no the current social security issues regarding benefits and protections
longer fit into the binary categories affecting platforms’ affiliated workers. for digital platform workers.17
of W-2 employees or independent To date, it seems that Canada is
contractors.” In November 2020, leaning more towards the EU than
© The Adecco Group | Delivery pending 16Delivery platform workers in Spain
As a result of a tripartite collective bargaining agreement platforms to leave the market (such as Deliveroo, which,
reached in March 2021, in May 2021, the Spanish cabinet in July 2021 announced its plan to cease its operations in
approved a “Rider Law,” which requires online delivery Spain), subcontract to other companies, or go back to the
platforms operating in the country to classify, under “first generation” marketplace model. It will also affect
certain circumstances, their couriers as direct employees riders. An analysis conducted by the Spanish Association
rather than independent contractors. The above- of Digital Economy (Adigital) shows that the law will
mentioned presumption of employment status, followed result in a reduction of delivery platforms operation
the September 2020 Spanish Court decision that a rider across Spain, with 23.000 riders (76% of total) losing their
affiliated with Glovo was an employee. Moreover, the income. At the same time, it estimates that restaurants
final provision of the Rider Law requires platforms to will lose up to 250 million euros in potential revenues
apply maximum transparency in the use of algorithms, from delivery meals.
clarifying how the latter might impact workers’ conditions
and hiring decisions, and notifying workers of the Delivery platforms operating in Spain have responded
algorithms’ parameters. to the Rider Law in various ways:
This law is the result of months of consultations between — Just Eat has complied with the requirements of the
the trade unions CCOO (Workers’ Commission) and new Rider Law and negotiated with UGT and CCOO
UGT (General Workers’ Confederation), the employer the first collective agreement in the delivery sector in
organisations CEOE (Spanish Confederation of Business Spain, a development that could serve as an example
Organisations) and CEPYME (Spanish Confederation for organizing labour relations for delivery workers.
of Small and Medium Enterprises), and the Spanish
— Glovo announced that it will hire 2,000 workers in Spain
government. The law came into force on 12 August
by the end of 2021. However, the company has also
2021, allowing platform companies a 90-day transition
introduced a “connect at any time” and a bidding system
period to comply with all the requested measures, such
in which the rider sets the price of their service, and
as registering all delivery riders in the General Social
the user decides if they will pay it or not. According to
Security Regime and paying monthly social security
the company, these features will provide the “flexibility,
contributions on their behalf.
autonomy and independence” for workers, aiming
However, some have noted that the 3-month-probation to have a group of genuine self-employed workers
period was too long, and have accused platform perform part of the work. Critics have described this
companies of creating loopholes around the new law that as a workaround to the Rider Law. Glovo is also hiring
allow them to continue operating without significantly additional workers through staffing agencies. Both the
changing their business models. According to Spain’s CCOO and UGT have filed complaints stating that
Asoriders, the Rider Law presents great limitations for Glovo's new model does not abide by Rider Law.
both platforms and workers. “By having to hire the
— In August 2021, Uber Eats announced that it will also
couriers directly, the fleet´s size will be reduced to the
subcontract its fleet of delivery people through staffing
minimum necessary to operate, without the ability to
agencies and third companies. Riders operating as
cover unforeseen peaks of high demand. In addition,
independent contractors received a message stating
the final customer will have to wait longer.” Already
that they would no longer be allowed to provide
in June 2021, Asoriders, together with the Professional
delivery services through the platform, resulting in a
Association of Autonomous Riders (APRA) stressed in an
class action lawsuit filed against the company over the
open letter that many riders affiliated to platforms were
layoffs of self-employed workers.
in favor of remaining self-employed.18 In an interview,
an Asoriders member shared that, beyond the media According to Bettina Schaller, Senior Vice President
attention that the law has received, it has not had any of Global Public Affairs for the Adecco Group, “the
positive effects on riders. The government created responses by platforms, as well as affiliated workers, have
a law that is not on par with new tools and working demonstrated the ripple effects that legislation like the
relationships of the digital market. Rider Law can have on an industry in one market. While
it is too early to measure the Law’s full effects, thus far, it
Critics also point to the law as an example of “populist
appears to have created more harm than good for both
politics that can ruin a growing sector before it even
platforms and workers."
gets off the ground.”19 The law, indeed, will force
© The Adecco Group | Delivery pending 17VI. Regulating and
Legislating
Delivery Platforms
The state of the policy conversation
The state of the policy conversation varies by country and has typically seen national or state-level courts making
concrete legal decisions related to the platform-worker relationship, specifically workers’ employment status, on a
case-by-case or company-specific basis. As mentioned earlier, attention and public scrutiny of the platform-worker
relationship has significantly increased due to the rapid growth in demand for platform services. This scrutiny,
vocalised by the public, media outlets and workers themselves, increased urgency for policymakers and has created
the necessary momentum for the policy conversation to move from policy convergence, development and discussions
towards policy standard setting at an expedited pace.
In general, the focus of policy conversation is based on the following key considerations:
1. Misclassification of delivery workers’ 4. Collective bargaining: Especially in the EU, part
employment status: According to a of the policy conversation focuses on the need to
representative from the OECD, “the bottom line allow workers affiliated with delivery platform to
is that a number of platform jobs are not platform collectively bargain their contracts, even if they
jobs, they are misclassified” and do not represent are technically self-employed. According to Sylvie
the workers’ commitment to their platform- Brunet, a Member of the European Parliament
affiliated work. To build a truly fair system there from France, “the possibility to have collective
is an absolute need to reduce misclassification bargaining is one of the ways to improve the
to allow “de facto employees” that are currently working conditions of platform workers. There is
labeled independent contractors to have access potential for innovative approaches to open up
to benefits and social security that are primarily new avenues for social dialogue and organisation
associated with full-employment status. via digital solutions.”
2. Worker reclassification: A third category of 5. Leveling the playing field: Today’s policy
workers would add an in-between option to just frameworks don’t look at the holistic picture of
“employee” and “self-employed” recognition. This the labour market in ensuring that all forms of
could include an intermediate class of workers work are provided with the same benefits, and all
who are self-employed but provide their services employers are held accountable in a consistent
as part of a profession or business undertaking way. To prevent unfair competition, policymakers
carried out by another party and receive some are considering regulating platforms in the same
level of protection (such as minimum pay and way as other employers, such as workforce
holiday pay). solutions companies or private companies, both of
which are obligated to provide a certain degree of
3. Giving delivery platform workers a choice: benefits and protections to their workers.
Policymakers are also examining creating a
framework of exemptions that allow each worker
affiliated with a platform to choose whether
they want to remain independent or be directly
employed by the platform.
© The Adecco Group | Delivery pending 18The main considerations for The policy conversation: who to include?
policymakers come down to
conditions of platform work, To create a more balanced relationship between delivery platforms and
specifically job and income security affiliated workers, while at the same time maintaining business growth
for workers, as well as access to and worker flexibility, will require an inclusive approach that results in a
benefits and social protections, productive conversation at the policy level. In addition to policymakers
career development opportunities driving the discourse, this approach needs to include:
and the right to negotiate contracts.
While the move to regulate the Riders: According to several experts interviewed for this paper,
platform-worker relationship riders’ voices are the most underrepresented in the current
is encouraged by parties like policy conversation. Instead, one of the main drivers of this
international organisations, discourse are unions claiming to represent self-employed
associations representing riders platform workers. However, many riders do not engage in unions.
and drivers, other voices are An effective way to represent riders’ voices that are not linked
more cautious about potential to unions would be to engage with rider-specific associations,
implications. According to Joseph who can collectively represent the riders’ interest and priorities.
Fuller of Harvard Business School,
“policymakers need to be careful Unions: Regardless of the above, unions should not be left out of
about how they intrude in these the policy conversation and can offer a complementary voice to
commercial relationships” without representing delivery platform workers’ perspectives, provided
a full understanding of the platform they are recognised as a representative body.
business model and the system
effects of what they are advocating. Platforms: According to Sylvie Brunet, MEP, “Platform
workers and platforms alike need to be properly organised and
A former public affairs executive represented in order to facilitate social dialogue and collective
from Postmates agrees that bargaining.” Platforms themselves also feel that they are being
regulations “may be well-intentioned shut out of important consultations, specifically at the EU level.
but also have the prospect of In 2021, the Instant Delivery Platforms Coalition was formed
yielding unintended consequences, by UberEats (U.S.), Deliveroo (U.K.), Bolt (Estonia), Delivery
unless new rules reflect a deep Hero (Germany), Glovo (Spain) and Wolt (Finland) to make sure
understanding of the platform their voices are heard. In September 2021, the group registered
technology and workers’ relationship Delivery Platforms Europe with the EU’s transparency register
to those platforms. Otherwise, to be able to officially weigh in on the upcoming European
regulation could have the debilitating Commission’s initiative on platform workers’ rights.
impacts of potentially depriving
workers of jobs and income Workforce solutions providers: As mentioned by a labour
opportunities, reducing platform industry specialist, workforce solutions providers “have that
availability, or even restricting expertise in providing flexibility in combination with security;
consumer choice by driving further they have also tailored those tools to provide protections
consolidation ultimately denying for a very stable working relationship.” As human resource
consumers the services they management experts, it is beneficial to include workforce
depend on.” According to an OECD solutions firms in a policy conversation that centers on work
representative, to be effective, contracts, benefits, social protections, and flexibility.
“governments’ policies should not
be a simple cut-paste of previous Academia: Think tanks and leading universities can provide
approaches implemented as a valuable input to help policymakers make well-informed decisions
reaction. Regulation should keep the that are based on research-based and data-driven insights.
business attractiveness for platforms
and for workers” and reflect the According to a former Postmates executive, the private sector should
realities of today’s more flexible “approach government and worker advocates as collaborative partners
world of work. not adversaries” while adhering “to principles of stakeholder capitalism.”
Furthermore, according to a representative of Spain’s Asoriders, “Delivery
drivers must be heard. Companies must be listened to, but they must abide
by the law and generate payments according to the reality of the work
that couriers exercise.” Key elements of a productive policy conversation
are training, employability and assurance to create a solution that protects
individuals rather than contracts. Only an inclusive approach to the policy
discourse will create a productive conversation between partners working
together towards a mutually beneficial outcome that produces win-win
scenarios for both platforms and affiliated workers.
© The Adecco Group | Delivery pending 19You can also read
