Order to Employ 60,000 Delivery Workers at Four Food Delivery Companies Including Uber Eats and Deliveroo
Ripple Effects Expected for Domestic Delivery Companies with Similar Business Structures
[Asia Economy Intern Reporter So-Young Kim] On the 24th (local time), the Milan Prosecutor's Office in Italy officially employed more than 60,000 workers at four major delivery companies and imposed a total fine of 733 million euros (approximately 986.5 billion KRW).
This action by the Milan Prosecutor's Office is expected to cause a significant ripple effect not only in Italy but also in the delivery app markets of various countries. This is because delivery app companies worldwide have similar business structures, and the conditions of rider employment and treatment are not significantly different.
According to AP News, the prosecutors began the investigation after several traffic accidents involving riders occurred in July 2019.
The investigation targeted the Spanish food delivery app 'Foodinho-Glovo', and food ordering companies 'Uber Eats', 'Just Eat', and 'Deliveroo'.
The prosecutors ordered the delivery companies to improve the treatment of delivery workers within the next 90 days, including providing safer bicycles, sufficient compensation in case of accidents, drafting employment contracts, and conducting training.
Just Eat stated in a press release that it has launched an internal investigation to check the safety status of its workers. In contrast, the other three companies?Uber Eats, Foodinho-Glovo, and Deliveroo Italy?expressed disagreement with the results of the Milan Prosecutor's investigation.
They stated in a joint statement, "Online food delivery is an industry that operates in full compliance with regulations and can guarantee essential services."
The Milan Prosecutor's Office said, "About 60,000 delivery workers use bicycles or scooters to work for these four major food delivery companies, but almost none of them have formal contracts or receive pensions, paid leave, sick leave, or accident coverage."
Furthermore, the investigation revealed that workers were managed by IT platforms that ranked riders based on their performance.
Chief Prosecutor Tiziana said, "This system effectively forces riders to accept all orders to avoid being downgraded in the rankings," adding, "This is why taking leave or sick days is impossible."
The prosecutors said delivery workers receive about 4 euros (approximately 5,400 KRW) per food delivery. Prosecutor Francesco Greco added, "Delivery workers are citizens, not slaves," emphasizing that the investigation into food delivery companies was conducted through a legal approach rather than a moral one.
The Italian prosecutors are also investigating the possibility that food delivery companies violated tax laws.
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