Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Milan prosecutors order food delivery groups to hire riders, pay 733 million euros in fines

Stock MarketsFeb 24, 2021 01:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The spread of the coronavirus disease (COVID-19) in Amsterdam

By Emilio Parodi

MILAN (Reuters) - Milan prosecutors said on Wednesday they had ordered four major food delivery companies to officially hire more than 60,000 workers and pay a total of 733 million euros ($889 million) in fines after an investigation showed their working conditions were inadequate.

The investigation, which was launched in July 2019 after a number of road accidents involving the so-called riders, targeted Spanish food delivery app Foodinho-Glovo and the Italian units of food ordering companies Uber (NYSE:UBER) Eats, Just Eat and Deliveroo, the prosecutors said.

"The vast majority of these riders are employed with occasional self-employment contracts ... but it emerged without a shadow of a doubt that ... they are fully included in the organisation of the company," Deputy Prosecutor Tiziana Siciliano said during a briefing.

The investigation also revealed that the workers were managed by an IT platform which ranked the riders according to performance.

"This system actually forces the rider to accept all orders in order not to be demoted in the ranking and then have less work," she added. "This is the reason why it is impossible to take holidays or sick leave."

As part of the provision, the companies are also asked to pay riders overdue contributions and provide them with adequate equipment, such as bicycles with lighting or suitable clothing.

Just Eat said in a statement it had launched an internal investigation to check on the safety conditions of its workers. It added its newly launched business model will help "introduce a safer, more controlled and direct system with our workers, as employees".

Uber Eats, Foodinho-Glovo and Deliveroo Italy said they did not agree with the findings of the Milan prosecutors.

"The online food delivery is an industry that operates in full compliance with the rules and is able to guarantee an essential service," they said in a joint statement.

So-called quick commerce has boomed in the past year as the pandemic forced people to stay at home and shop online, with companies like Glovo reporting a jump in courier services.

On Wednesday the European Commission took a step towards improving the rights of gig economy workers with the launch of a public consultation to determine their legal employment status and how to improve their working conditions.

The chief prosecutor Francesco Greco added that a separate tax investigation was launched into the Italian unit of Uber Eats.

($1 = 0.8242 euros)

Milan prosecutors order food delivery groups to hire riders, pay 733 million euros in fines
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email