- 25 November 2021
- Transport / Logistics Services
In a large part due to the new law over rider employment rights in the country, Deliveroo has announced it is to desist operations in Spain as of 29 November.
Deliveroo apparently consulted its Spanish workforce before making the decision. In a statement it thanked its restaurants and riders for their cooperation, saying it was proud to have been a ‘lifeline’ for delivery staff during the pandemic. As part of the firm’s departure from the country it has agreed severance packages for both employees and the riders it objects to being made employees.
The restaurant and q-commerce delivery company announced the decision to leave Spain after the so-called ‘rider law’ was passed by its Parliament in July. Under the new law, Deliveroo would be forced to convert all their riders into employees or to subcontract them out to third-party companies who in turn would have to give full employment rights to those riders.
At the same time, Deliveroo has alleged ‘difficulties for the viability of the business’ as another reason to leave Spain – shorthand for their margins being affected by having to offer full employment rights for those that are the public face of the business. The move will affect around 4,000 riders and employees nationwide.