Deliveroo pay: Company says London riders can choose between hourly rate or per-delivery
After a number of Deliveroo riders protested about a new per-delivery payment scheme currently being trialled in London, the company has emphasised that riders can choose either to stick with the fee model or opt in to trial the new system. Under the old system, riders make £7 an hour plus £1 per delivery – and according to Deliveroo this means that they earn around £9.20 to £9.30 an hour.
With the new “drop fee” pay system which Deliveroo is now trialling in London, riders make £3.75 per delivery.
In a blog posted on its website on Friday (12 August), Deliveroo said that this will mean that riders can maximise their earnings during the peak times.
“In the places we’ve piloted it,” said Deliveroo, “we’ve seen average hourly fees for riders increase by up to x2 the previous payment model at our busiest times. Many drivers tell us they will receive more fees over a shorter period of time with this model, and that this works better for them.”
Deliveroo says this system “works better” for the majority because 85% of its riders “work with Deliveroo to supplement their incomes”, rather than treating it as a full time job.
Nevertheless, hundreds of riders have organised protests about the trialled scheme – which they say could mean that they will ended up getting less than national living wage of £7.20 an hour, when they on- and off-peak earnings are averaged out.
Deliveroo signed off its blog on Friday by saying: “Speaking with our riders and hearing their concerns on the new model is our top priority. We are open to all feedback and, contrary to speculation, have not taken any action against riders who have expressed concern with pay or the payment model. We’re committed to an open conversation, so we can continue to improve our payment model and delivery experience.
“Ultimately, if this model doesn’t work for our riders, it doesn’t work for us. We will therefore be working hard over the coming weeks to ensure that our riders feel heard and that their contribution to the company’s success is recognised fairly.”
The issue of whether “lifestyle” couriers and “crowdsourced” riders/drivers can expect to earn the £7.20 an hour national living wage is a contentious one, and depends on whether they are classified as employees or self-employed contract staff. Last month, section of the UK media focused heavily on the earnings potential of drivers working for some of the country’s biggest delivery firms.
