Discard that the entry into force of the Rider Law is behind the decision. Maintaining a top-tier position would require a high investment.
The food delivery company Deliveroo announced this Friday its intention to stop operating in Spain, due to the strong competition in the sector, and for this it will open a consultation process among its workers.
Sources from the British company have explained to Efe that this consultation – also open to its distributors, who worked as freelancers – is part of the legal procedure to be followed in order to cease their business in the country.
They have specified that the reasons behind leaving Spain are related to the difficulty of “maintaining a top-level market position , since it would require a very high level of investment with a very uncertain potential return.”
In this sense, they have ruled out that the entry into force of the “Rider Law” – which aims to force digital delivery platforms such as Deliveroo to hire their distributors as salaried employees instead of keeping them as self-employed – is behind this decision.
Regardless of the result of the consultation with workers and distributors – a process that will begin at the beginning of September and will last about a month – those responsible for the company have specified in a statement that if they leave the country they will activate “an adequate compensation package that complies with national “legislation.
Its objective: “To put an end to operations in Spain to focus investments and resources on the other markets in which it operates”
They also recalled that Deliveroo operates in a dozen markets around the world and Spain represents “less than 2% of the gross value of transactions (GTV)”.
The company, which competes with Just Eat, Glovo and Ubereats, has indicated that in most of the countries where it is located it occupies the first or second position, while in Spain it does not provide the position it currently occupies.
Its objective is “to put an end to operations in Spain” to “focus investments and resources on the other markets in which it operates”.
According to their data, Deliveroo currently has 2,500 delivery people and collaborated with 10,000 restaurants in more than 70 cities across the country.
Leon Cooper was born and raised in Vancouver. As a Reporter for WideWorldMag, Leon has contributed to several online publications including Dream House Publications and Granville Magazine. In regards to academics, Leon has got a Post Graduation Degree in Department Of Archaeology from The University Of British Columbia. As a Reporter for WideWorldMag Leon Covers International Topics.