[ad_1]
Just Eat Takeaway is laying off 1,700 delivery couriers across the UK and returning to the gig-economy model that its chief executive Jitse Groen had previously said “comes at the expense of society and workers themselves”.
The U-turn comes two years after Europe’s biggest food delivery group sought to set itself apart from its largest rivals, Deliveroo and Uber Eats, by hiring couriers in the UK rather than relying entirely on gig workers for takeaway deliveries.
“Just Eat UK is reorganising and simplifying its delivery operation as part of the ongoing goal of improving efficiency,” said JET on Tuesday. “As part of this process we have proposed to transition away from the worker model for couriers.”
The move comes as food delivery companies are under pressure from investors to improve profitability amid a slowdown in demand following the sector’s lockdown-driven boom.
Earlier this month, JET reported a fivefold increase in pre-tax losses last year to €5.8bn, including a €4.7bn writedown on the merger of UK-based Just Eat and Netherlands-based Takeaway.com, and the group’s subsequent acquisition of US-based Grubhub.
The food delivery group had hired 1,700 couriers in six UK cities since launching what it calls its “Scoober” model in London in late 2020, as well as an operations team of around 170, most of whom will also be made redundant.
Its UK boss Andrew Kenny acknowledged at the time that operating costs would rise as a result of the new model but said offering couriers hourly wages, sick pay and pension contributions was “the right thing to do”.
In a February 2021 letter to the Financial Times, Groen — who founded Takeaway.com in 2000 — said gig work “led to precarious working conditions” and “comes at the expense of society and workers themselves”.
JET will now adopt the same self-employed model as Deliveroo and Uber Eats in the UK for meals delivered by its own couriers, although many orders placed by customers through its online marketplace are delivered by takeaway outlets’ own staff.
The company still operates the Scoober model in parts of continental Europe.
Just Eat reported a 10 per cent drop in orders in the UK and Ireland in 2022, while revenues increased by 6 per cent, thanks largely to restaurants increasing prices. The company has projected that adjusted earnings will grow from €19mn in 2022 to €225mn this year.
It said there would be “no impact” on customers or restaurant partners from the staffing changes. The Telegraph was first to report the move.
[ad_2]
Source link