A report by UK MP Frank Field has highlighted the dangers of the gig economy after finding that Deliveroo paid delivery drivers as little as £2 an hour. The drivers are self-employed and paid by delivery rather than by the hour, and Field is accusing the company of flooding the streets with drivers.
“It’s clear from my report that company exploits some of its riders, we just don't know how many,” Field told ITV. “They don’t conform with paying National Minimum Wage when they want riders to sign on for work. I really hope the government will look at this issue.”
While some reported being paid the equivalent of £2 an hour, other reported a £20 pay rate. Field is calling for Deliveroo to guarantee all riders the National Living Wage of £7.83 an hour and accused them of flooding the streets with drivers to keep wages down.
The company has hit back at the reports, accusing Field of misleading customers for political gain. “Deliveroo is proud to offer flexible well-paid work where riders on average earn well over £10 an hour, well above the National Living Wage,” said a Deliveroo spokesperson. “In the modern economy people want to fit their work around their lives, not the other way round. This is why working with Deliveroo is so popular as it gives riders total flexibility.”
The company maintained that if it shifts to an hourly rate, the flexibility offered by the service will cease to exist.
“Riders choose how much they want to work and when, and are very clear they want to protect the flexibility that self-employment provides. Deliveroo believes more can be done to increase the security for riders while protecting their ability to be their own bosses, which is why we have introduced free, market-leading insurance for all, covering riders in case anything goes wrong.”
