Riders and shareholders to challenge Deliveroo on pay and job security at AGM

Riders will allege that the firm failed to engage with riders who say they have been facing increasing financial difficulties in the last 12 months.

Rebecca Speare-Cole
Wednesday 22 May 2024 19:01 EDT
The Deliveroo board faces pressure from riders over pay (David Davies/PA)
The Deliveroo board faces pressure from riders over pay (David Davies/PA) (PA Wire)

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Riders and shareholder activists are preparing to challenge Deliveroo on poor pay, working conditions and job security at its annual general meeting (AGM).

The board will face questions from Deliveroo riders, co-ordinated 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 allege that Deliveroo has failed to engage with riders who say they have been facing increasing financial difficulties in the last 12 months.

Flexibility means nothing when we’re forced to work excessive hours to support our families, pay our bills, or even just stay alive

Uli Cioffi

Riders raised similar frustrations at last year’s AGM where they also protested against the bumper pay package of founder and chief executive Will Shu.

As they are self-employed contractors, employers are not legally obliged to pay app-based delivery drivers the statutory national living wage of £11.44 an hour.

Drivers get paid per delivery with a variable distance fee, but many complain that it is not clear how the changing rates are worked out.

In February, riders staged what is thought to be the largest-ever courier strike to demand better pay and improved working conditions.

Before the AGM, more than 100 members of the Brazilian, Bengali, Romanian and British rider communities are expected to gather outside the building for a protest followed by a motorcade rally across London.

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?

Alex Marshall

Uli Cioffi, a Deliveroo rider and IWGB member who is set to join the action, said he has seen no improvements in pay or working conditions since he began working for Deliveroo four years ago.

“Every day is a struggle working for this company,” he said.

“Flexibility means nothing when we’re forced to work excessive hours to support our families, pay our bills, or even just stay alive.”

Alex Marshall, IWGB president and a former courier, said: “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, head of good work at ShareAction, said: “Gig economy workers have been some of the hardest hit by the cost-of-living crisis.

Rider retention and application rates are high and the overwhelming majority of riders tell us that they are satisfied working with us

Deliveroo

“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.

“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.”

In 2022, Deliveroo formed a partnership with the GMB union but faced criticism from the IWGB.

Following a recent round of collective bargaining with the GMB, Deliveroo said it agreed to increase the guaranteed minimum pay for the periods when riders are on an order to £12 an hour, plus vehicle costs for all vehicle types.

A Deliveroo spokesperson said: “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.

“Rider retention and application rates are high and the overwhelming majority of riders tell us that they are satisfied working with us.”

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