The global food delivery giant Deliveroo, once heralded as proof of the tech industry’s invincibility, was just sold. The American food delivery giant DoorDash bought the company for £2.9 billion. This acquisition raises fundamental questions about the labour conditions of Deliveroo riders. Far too often, they are victims of skimming and toil in a precarious setting. Celestino Pereira from Brazil is one of the racers tackling this unforgiving terrain. He represents the struggles that so many Americans encounter just trying to get by in today’s dynamic and demanding gig economy.
Pereira entered the UK lawfully in 2019 and started work immediately as a Deliveroo courier. When riding his new moped, he calculates that he is making around £11 an hour. Deliveroo promises £12.30 per hour as a minimum pay floor for the time an order takes to complete. Most would-be riders find it hard to hit this bar, as so many of their jobs are low income and exceedingly variable.
Initially, Pereira started his career on a pedal bike but quickly found it impossible to meet the minimum wage requirements. He took action to address this by investing in an e-bike that cost about £500. This ride has quickly evolved into a can’t-miss opportunity for any cyclist serious about working smarter and not harder. This transition has raised new worries about the legality of the e-bikes themselves. For one, people are concerned about the safety of these vehicles that workers would be operating.
City of London police Sgt. Stuart Ford says that’s the tip of the iceberg. Around three in four of the illegal e-bikes they find on the roads are being ridden by food delivery workers, including those from Deliveroo. Last year, law enforcement seized 212 illegal e-bikes this year alone. In particular, the proliferation of unregulated vehicles is deeply concerning. It jeopardizes the safety of TNC riders and the rest of the public.
This is what happened, recently, to 21-year-old Maehedi Hasan, a delivery worker for Uber Eats and Deliveroo. He happened to be riding an illegal e-bike as well. He first purchased his bike online for £600. He relies on it to fuel him through his long workdays, usually clocking eight to nine hours each day. Similar to Pereira, he weaves in and out of the gig economy hoping to find a high-paying day’s work.
The APPGCW report reveals deeply troubling issues within online marketplaces. They are selling unsafe products, like e-bikes that delivery riders use, with little-to-no oversight. Without strong regulations, these vehicles pose deadly hazards for riders. They put everyone else who shares the road at risk.
“When the Factory Acts were passed, MPs said we’re going to need to have inspectors to enforce them or they’ll just be ignored by the exploiters.” – Fabian Hamilton
The adoption of e-bikes isn’t just a new shiny problem—it’s a new opportunity in an old industrial revolution to make sure vulnerable populations aren’t taken advantage of. As Pereira notes, “You only need a phone and a bicycle, just show the number and pick up the order, no need to speak English, so it was good for me.” While the gig economy is easy to enter, it tends to be a more risky endeavor. New arrivals to the country are more vulnerable to exploitation and are particularly targeted for abuse.
Continuing concerns by Sgt. Ford have focused on how many riders do not understand the legal implications that come with owning and riding an e-bike. “That’s your illegal for a start,” he said when explaining the legality of unregistered e-bikes on public roads. He explained that “you should pedal to make the motor work,” underscoring that many riders are operating these vehicles in violation of existing regulations.
Pereira discussed his worries about job security and accountability in the gig economy. “It’s going to affect my account because when you accept a job, that means you’re committing to delivering to the customer,” he said. “If you don’t, that’s your problem, not the company’s.”
Due in part to the absence of unifying regulatory frameworks governing e-bikes, experts such as White have called for stricter regulations. “For me, an e-bike is no different to a 50cc moped, except it’s electric rather than petrol-powered,” White remarked. He argues that these vehicles should be treated like all other road vehicles, and thus need insurance and registration plates for identification purposes.
While the current debate about exploitation in the gig economy is important, it actually hides a bigger problem—that workers’ rights and protections in general are being eroded. As Hamilton pointed out, “It never ceases to amaze me that you can sell a product that is illegal to be used on the roads.”
This week Deliveroo’s IPO has raised enormous excitement over its disastrous financial position. It has cast a spotlight on the urgent challenges affecting its workforce. An estimated 1.7 million Americans are using companies like DoorDash, Postmates, and Grubhub to earn a living. Regulators need to step up now to safeguard these workers and ensure that they can return home safely at the end of the day.