+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Deliveroo's CEO says couriers can choose how they want to be paid

Aug 15, 2016, 19:21 IST

Deliveroo

Deliveroo is letting some of its riders choose how they want to be paid, according to the company's website.

Advertisement

The move - outlined in a blog post on Deliveroo's website - comes after couriers protested outside Deliveroo's London headquarters over a new payment structure.

Deliveroo CEO and cofounder Will Shu told the BBC Today programme that he was "very sorry things have got to this point".

The new payment system involves paying riders per delivery instead of per hour but riders are concerned that they'll end up earning less than the national minimum living wage of £7.20 an hour under the new payment method.

"Our riders are the life blood of our business and without them we are nothing," said Shu. "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."

Advertisement

However, the Independent Workers Union Couriers & Logistics Branch (CLB) states in a blog post that Deliveroo riders will have to move to another zone where the £7 per hour/+£1 per delivery scheme is still in place if they don't want to be paid per delivery.

"This means drivers will have to work in zones far away, adding extra costs and time to their day," writes the union. "This also means drivers will have to learn their new zone from scratch and spend time building up their knowledge, as it takes weeks and months to get enough knowledge to work efficiently. Drivers will have to learn a whole new group of restaurants and customers."

Deliveroo, which has raised $475 million (£366 million) from investors, said the new payment method is being trialled with 280 of Deliveroo's 3,000 plus London couriers.

NOW WATCH: Forget solar panels - Elon Musk wants to build Solar roofs

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article