Business, 24.01.2022 14:00 esmemaluma00

Deliveroo is an online food delivery company that operates in the UK and 11 other countries. It delivers food from restaurants which do not have their own delivery service for example, Pizza Express and Wagamama. It has grown quickly,
earning revenues of £130 million in 2015 and 2016. Deliveroo has just received £212 million from investors to finance further
expansion of the company.
The company has been involved in a pay dispute with its delivery drivers. It sent an email to its workers telling them they
would be paid £3.75 per delivery instead of an hourly rate of £7 plus £1 per delivery. The new scheme could see the delivery
drivers earn less than the living wage particularly when the company has few orders. This could cause difficulties for the
company and may lead to a change in plan.
Deliveroo has said it will enforce the pay terms and claimed that its drivers had responded positively in early trials. It is
expecting to face increasing competition from companies such as Uber Eats in the near future.

1. To what extent do you believe that it is right for Deliveroo to change the way that it pays its delivery drivers? (9
marks)

Answers: 2

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Deliveroo is an online food delivery company that operates in the UK and 11 other countries. It deli...

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