23 May 2024 , 13:32
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Riders and shareholder activists are gearing up to challenge Deliveroo on poor pay, working conditions and job security at its annual general meeting (AGM).
The board will be confronted with questions from Deliveroo riders, orchestrated by ShareAction and the Independent Workers Union of Great Britain (IWGB), during the meeting at the offices of law firm White & Case in central London on Thursday. They will claim that Deliveroo has neglected to engage with riders who report increasing financial difficulties over the past 12 months.
Riders voiced similar frustrations at last year's AGM where they also protested against the hefty pay package of founder and chief executive Will Shu. As they are self-employed contractors, employers are not legally required to pay app-based delivery drivers the statutory national living wage of £11.44 an hour.
Drivers are paid per delivery with a variable distance fee, but many complain that it is not clear how the fluctuating rates are calculated. In February, riders staged what is believed to be the largest-ever courier strike to demand better pay and improved working conditions.
Ahead of the AGM, more than 100 members of the Brazilian, Bengali, Romanian and British rider communities are expected to assemble outside the building for a protest followed by a motorcade rally across London.
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Uli Cioffi, a Deliveroo rider and member of the Independent Workers' Union of Great Britain (IWGB), who is gearing up to join the strike, expressed his frustration, stating that despite working for Deliveroo for four years, he has seen no improvement in pay or conditions. "Every day is a struggle working for this company," he lamented. "Flexibility means nothing when we're forced to work excessive hours to support our families, pay our bills, or even just stay alive."
IWGB President Alex Marshall, himself a former courier, highlighted the disparity between shareholder profits and rider earnings: "In the last year Deliveroo paid out £300 million to shareholders, whilst rider pay continues to decrease in real terms. Where are the pay rises for the riders who make Deliveroo and their shareholders their millions through blood and sweat who are pushed to work 12-plus hour days, seven days a week, just to get by? ".
Dan Howard from ShareAction, an organisation promoting responsible investment, said: "Gig economy workers have been some of the hardest hit by the cost-of-living crisis. The riders today are making sure Deliveroo and its shareholders cannot continue to ignore the impact of inadequate pay and poor working conditions on their lives."
He warned of the business risks Deliveroo faces if it neglects its workforce: "The strikes have made it clear there are very real business risks if the company fails to step up to properly compensate and protect its workers. Investors must keep a close eye on making sure this happens to support the long-term interests of the business and its workers."
Despite forming a partnership with the GMB union in 2022, Deliveroo faced criticism from the IWGB for not doing enough to address these issues. Deliveroo has announced a pay bump for its riders following successful negotiations with the GMB union, setting a new guaranteed minimum of £12 per hour plus vehicle costs during active delivery periods.
A spokesperson from Deliveroo commented: "We value dialogue with riders and always listen to their feedback. Deliveroo offers the flexible work riders tell us they want alongside attractive earning opportunities and protections, including free insurance, sickness cover, financial support when riders become new parents and a range of training opportunities."
The company also noted: "Rider retention and application rates are high and the overwhelming majority of riders tell us that they are satisfied working with us."