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You can find the current article at its original source at https://www.theguardian.com/business/2016/aug/15/deliveroo-boss-says-sorry-for-pay-dispute
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Deliveroo boss says sorry for pay dispute | Deliveroo boss says sorry for pay dispute |
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The Deliveroo boss has apologised for allowing a dispute with his riders to escalate after the government intervened at the weekend. | |
Deliveroo has been at odds with its couriers in London over changes to pay terms that the riders said would significantly reduce their earnings. The plan prompted hundreds of riders to protest against an attempt to pay them for each delivery instead of an hourly rate. | Deliveroo has been at odds with its couriers in London over changes to pay terms that the riders said would significantly reduce their earnings. The plan prompted hundreds of riders to protest against an attempt to pay them for each delivery instead of an hourly rate. |
The Department for Business, Energy and Industrial Strategy stepped in on Sunday to say that workers must be paid the “national living wage” of £7.20 an hour unless a court or HMRC rules that they are self-employed. | The Department for Business, Energy and Industrial Strategy stepped in on Sunday to say that workers must be paid the “national living wage” of £7.20 an hour unless a court or HMRC rules that they are self-employed. |
William Shu, Deliveroo’s co-founder and chief executive, said that under the old pay plan of £7 an hour plus £1 per delivery riders made £9.20 to £9.30 an hour with tips and that he expected them to earn more under the new arrangement, which pays them £3.75 per delivery. | William Shu, Deliveroo’s co-founder and chief executive, said that under the old pay plan of £7 an hour plus £1 per delivery riders made £9.20 to £9.30 an hour with tips and that he expected them to earn more under the new arrangement, which pays them £3.75 per delivery. |
Related: ‘Love the job, hate the way we’re treated’: life on the frontline of UK’s delivery army | Related: ‘Love the job, hate the way we’re treated’: life on the frontline of UK’s delivery army |
But he said riders could choose to stick with the terms of the old plan. Deliveroo has said the new plan is a trial and applies to only 280 of its 3,000 riders in London. | But he said riders could choose to stick with the terms of the old plan. Deliveroo has said the new plan is a trial and applies to only 280 of its 3,000 riders in London. |
“I’m very sorry things have gone to this point. Our riders are the life blood of our business and without them we are nothing,” Shu told the BBC’s Today programme. | “I’m very sorry things have gone to this point. Our riders are the life blood of our business and without them we are nothing,” Shu told the BBC’s Today programme. |
“This [the new pay plan] is in response to our riders’ number one concern which is flexibility … This was a choice for them. If the riders choose to be on a new scheme that’s great … If riders feel like it’s not for them, they can choose to work on the old scheme as well.” | “This [the new pay plan] is in response to our riders’ number one concern which is flexibility … This was a choice for them. If the riders choose to be on a new scheme that’s great … If riders feel like it’s not for them, they can choose to work on the old scheme as well.” |
Deliveroo delivers food from thousands of restaurants that do not have their own delivery service, charging the customers £2.50 per delivery. Its clients include Pizza Express, Byron and Gourmet Burger Kitchen. | |
Shu denied riders were under pressure to get deliveries made quickly. The former investment banker worked as a rider for Deliveroo for eight months to help him understand the logistics. | Shu denied riders were under pressure to get deliveries made quickly. The former investment banker worked as a rider for Deliveroo for eight months to help him understand the logistics. |
“I know exactly what it is like – the hardships and the work involved to be a rider. Under no circumstances are we pressuring people to go super fast on the road.” | “I know exactly what it is like – the hardships and the work involved to be a rider. Under no circumstances are we pressuring people to go super fast on the road.” |
•This article has been amended to make clear that Deliveroo had offered a choice of pay plans to drivers and riders before the government intervened. |