The unstoppable progress that the sector has had in recent years is indisputable. And with this growth this business model has also had to face new challenges: incorporation of technological services, great competition, the growing demands of consumers who are looking for more agile and faster services, and of course, also a new legal framework, and although many companies are still in the race to capture most of the market, Deliveroo leaves Spain in a few days.
Goodbye to Deliveroo Spain is definitive: through , the company, which had announced its withdrawal from the country a few months ago, has decided that next November 29 will be the date for his departure, ensuring that it took this measure after an internal consultation process.
Because it has not reached the expected performance, Deliveroo leaves Spain in November
The British delivery platform announced its departure from Spain last July, Just when the law was about to come into effect with which self-employed delivery people become salaried workers, Deliveroo Spain explains that their exit from the market is due to a matter of jurisdiction, because it is at a disadvantage compared to other companies in the country, such as Uber Eats, despite having 9,000 restaurants in 70 cities in the country.
According to Deliveroo, maintaining a top-tier market position in Spain would require “a very high level of investment, with a very uncertain long-term potential return, which could affect the economic viability of the market” to the company.
And it is that although Deliveroo currently operates in 12 markets around the world, during the first quarter of the year.
The rider law could have influenced the decision to leave the country
Although the company assures that the so-called Rider Law has not been the cause of its departure from Spain, it is true that Deliveroo has worked in the country with a model of riders under autonomous contract which has been challenged in : The company accumulated several demands from Social Security that demanded large amounts from the company for unpaid social contributions.
In fact, after the entry into force of the Rider Law in August, the company continued to work with self-employed delivery men. to whom he was discharged given his departure from the country.
Of course, this new law not only affected Deliveroo but also was extended to all delivery platforms, and this new labor model has brought with it a challenge for the collaborative economy sector, which finds it difficult to fit into previously established labor relations models.
Deliveroo will look to grow in other markets
Whatever the reason, the closure of Deliveroo will affect both plant workers and riders who until now collaborated with the company. The company currently has 113 employees in the country, while collaborating with 3,800 riders who have been included in a collective dismissal procedure.
It was agreed that compensation for Deliveroo Spain employees be 45 days of salary per year worked, with a minimum of 1,000 euros if that amount is not reached.
«We are very grateful for the talent of our employees and want to thank them for their commitment to the company and for all that they have done, and we are pleased to have agreed appropriate compensation packages for both them and the riders.” the company assures in its statement.
Of course, even though the Riders Law has already been applied, this exit will benefit his rivals, which will try to gain more market share and improve their profit margins, especially now that the delivery sector has been boosted after the confinement caused by the pandemic, helping both consumers and the restaurant sector. Who will win the race?
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