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Deliveroo offers concessions in pay row | Deliveroo offers concessions in pay row |
(about 4 hours later) | |
Takeaway delivery firm Deliveroo has softened its stance on a controversial new pay scheme which saw it face a backlash from drivers and government. | Takeaway delivery firm Deliveroo has softened its stance on a controversial new pay scheme which saw it face a backlash from drivers and government. |
Workers can now opt out of the firm's pilot scheme to pay £3.75 per delivery, instead of the present rates of £7 an hour plus £1 a delivery. | Workers can now opt out of the firm's pilot scheme to pay £3.75 per delivery, instead of the present rates of £7 an hour plus £1 a delivery. |
For those in the new scheme, the firm will also make sure they are paid at least £7.50 an hour at peak times. | For those in the new scheme, the firm will also make sure they are paid at least £7.50 an hour at peak times. |
The firm said it had made the change in response to driver feedback. | |
'Listened to concerns' | 'Listened to concerns' |
The Department for Business, Energy and Industrial Strategy (DBEIS) has said workers must be paid the so-called "national living wage" of £7.20 an hour, unless HMRC or a court ruled they were self-employed. | |
Deliveroo had said the new pay scales were part of a pilot programme being tested by just 280 London riders, out of more than 3,000 in the capital. | Deliveroo had said the new pay scales were part of a pilot programme being tested by just 280 London riders, out of more than 3,000 in the capital. |
Announcing the concessions, the firm's UK and Ireland managing director Dan Warne said: "We've reached out to every rider involved to gather feedback. | Announcing the concessions, the firm's UK and Ireland managing director Dan Warne said: "We've reached out to every rider involved to gather feedback. |
"We've listened to their concerns and offered every rider the choice to withdraw from the trial. | "We've listened to their concerns and offered every rider the choice to withdraw from the trial. |
"For those that choose to take part in the trial we'll also be guaranteeing fees at peak times for riders will be at least £7.50 per hour plus tips and petrol costs." | "For those that choose to take part in the trial we'll also be guaranteeing fees at peak times for riders will be at least £7.50 per hour plus tips and petrol costs." |
And the firm said the new pay plan, which had led to driver protests, was only going to be a 90-day trial which will now be voluntary. | And the firm said the new pay plan, which had led to driver protests, was only going to be a 90-day trial which will now be voluntary. |
'Decent wage' | 'Decent wage' |
Last week Deliveroo drivers protested outside the company's headquarters in central London about the new pay rates. | Last week Deliveroo drivers protested outside the company's headquarters in central London about the new pay rates. |
It prompted DBEIS to state: "The government is determined to build an economy that works for all - that includes ensuring everyone gets a decent wage. | It prompted DBEIS to state: "The government is determined to build an economy that works for all - that includes ensuring everyone gets a decent wage. |
"An individual's employment status is determined by the reality of the working relationship and not the type of contract they have signed. | "An individual's employment status is determined by the reality of the working relationship and not the type of contract they have signed. |
"Individuals cannot opt out of the rights they are owed, nor can an employer decide not to afford individuals those rights." | "Individuals cannot opt out of the rights they are owed, nor can an employer decide not to afford individuals those rights." |
Deliveroo provides a delivery service to thousands of restaurants that do not have their own drivers, using riders on bicycles or mopeds. Customers are charged a £2.50 delivery fee. | Deliveroo provides a delivery service to thousands of restaurants that do not have their own drivers, using riders on bicycles or mopeds. Customers are charged a £2.50 delivery fee. |
Set up in 2013 by William Shu, a former investment banker, and software developer Greg Orlowski, Deliveroo has attracted hundreds of millions in funding from venture capital firms. | Set up in 2013 by William Shu, a former investment banker, and software developer Greg Orlowski, Deliveroo has attracted hundreds of millions in funding from venture capital firms. |
It plans to use the cash to expand the service to more cities in Europe, Asia and the Middle East. | It plans to use the cash to expand the service to more cities in Europe, Asia and the Middle East. |
A fierce battle is under way in the UK takeaway delivery market, with companies including Just Eat, Hungry House and Uber Eats vying for customers. | A fierce battle is under way in the UK takeaway delivery market, with companies including Just Eat, Hungry House and Uber Eats vying for customers. |
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