Deliveroo and other food delivery companies struggle in Spain and Europe as the new proposals require them to disclose unnecessary details, reported by Adam Clark on WallStreetJournal.
Key Takes:
- Spanish government proposals affect food delivery companies in Europe including Deliveroo and Uber Eats
- Companies must now disclose details about their algorithms and working conditions
- Delivery workers must now be regulated as permanent employees
- Spanish law favors workers over delivery companies. European Union is taking action against companies underpaying workers
- The new rules make things harder for Deliveroo and Uber Eats
Uber, Deliveroo, and their peers are now being targeted by the Spanish authorities which is affecting their overall position in Europe. In this new proposal by the authorities, the companies would have to list the details of their confidential algorithms. [Deliveroo EuropeClark StreetJournal]
Food-delivery companies in Europe including Deliverop avoid having to name their workers as “employees” due to the laws that mostly favor the workforce. Recently, the Spanish government passed a similar law that would restrict delivery companies from “employing” the workforce, and provide them with employee benefits.
Specifically, the Spanish government, along with Uber Eats, Deliveroo, and the like have come to an agreement that all the delivery workers would now be regulated under permanent employment, as reported by Adam Clark in the Wall Streat Journal.
The agreement was made official on March 11, 2021, with the collaboration of business organizations and the Spanish authorities. [Deliveroo EuropeClark StreetJournal]
Now that the law has been passed, all the delivery workers that register through such apps will be under the law’s protection as the employers would now have to disclose the details of their working algorithms.
Companies such as Uber Eats and Deliveroo in Europe are facing defeat as the law is favoring the workforce and is against the benefit of such delivery companies. The Wall Streat Journal and Adam Clark report that these companies were hoping that the Spanish government would follow Italy’s footsteps; Italy offered minimum pay and other small benefits, but the employers didn’t have to disclose their algorithm that would affect working conditions, nor do they have to classify them as “employees.”
The European Union is serious about companies that underpay their workers in Europe and have given them notice that legal action would be taken against such digital platforms.
In Conclusion, Deliveroo and Uber Eats are having trouble in Europe because of new rules from the Spanish government. The companies must now say how their delivery workers are treated and what their working conditions are like. The Spanish government wants to help workers, but this is making things harder for Deliveroo and Uber Eats. The European Union is also working to make sure workers are treated fairly and paid enough, and these new rules fit with that goal. [Deliveroo EuropeClark StreetJournal]
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