The fight for the Spanish delivery market between the main food delivery platforms already has its first confirmed loss. Deliveroo has just announced that, after the meetings held with the workers’ representatives, it will stop working in Spain on November 29.
The company ends its activity in our country, where it began operating in 2015, after having reached an agreement on the conditions to resolve the departure of its more than 3,800 employees through an Employment Regulation File (ERE).
Those affected, both distributors and plant personnel, will receive compensation of 45 days of gross salary per year worked, from which the corresponding IRPF and Social Security contributions will be deducted. The agreement also provides for the payment of a minimum of 1,000 euros in all cases, including those workers who do not add up to the year worked or whose income was less.
In a statement, the company thanks “all the riders and restaurants that have worked with Deliveroo in Spain, as well as our wonderful customers. The company is proud to have had some of the best restaurants in Spain as partners and to have collaborated with thousands of riders who have worked hard to bring millions of delicious meals to the Spanish people since 2015, even having been a lifeline for many of them during the pandemic”.
This decision comes after as a result of the approval of what is known as the Rider Law, which forced the hiring of delivery people. Then Deliveroo advanced its intention to “focus investments and resources on the other markets in which it operates, continuing to grow its network of consumers, restaurant and supermarket partners, as well as riders, and expanding its share of market”.
motivations
Among the reasons for his departure, he recognized the difficulty in maintaining a top-level market position, “since it would require a very high level of investment with a very uncertain potential return.”
In the note sent to the media today, the platform, present in 12 countries, states: “We are very grateful for the talent of our employees and we want to thank them for their commitment to the company and for everything they have done, and we We are pleased to have agreed suitable compensation packages for both them and the riders.”
This departure occurs in a context marked by the increase in the market share of home delivery services within the hospitality industry, accelerated by the pandemic, as well as by the growing competition between the different aggregators present in Spain and the growth of the delivery applications of the main commercial catering brands. Deliveroo’s business in Spain in the first half of the year barely represented 2% of the volume of the company’s activity on a global scale.
Refunds to users
At noon, users of the platform also received a message in their emails in which Deliveroo explained that its service would be provided normally until 10:00 am on November 29. In it they also warned that they would authorize the reimbursement of the amount of the credit that remained to be used in the client’s accounts within a period of 10 working days. Likewise, Deliveroo Plus users will see their subscriptions canceled on November 29 and the last monthly payment will be returned to them.
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