Company Overview

Deliveroo is a UK based start up company which began as a dream at co$-$founders Will Shu and Greg Orlowski office desks in $2013.$ It is a delivery service application $($app$)$ that operates with restaurant partners to deliver meals to customers via its riders. The customer orders a meal via the Deliveroo app, that is accepted by the restaurant partner. Riders are able to view incoming order requests by customers in their area, which they can accept or decline, once accepted the driver is responsible for picking up and subsequently delivering the order, all managed via the app. With the tagline $$Order high$-$quality takeaway online from top Singapore restaurants, fast delivery straight to your home or office.$($Deliveroo$,2019).$ Deliveroo pride itself on the flexibility it offers both customers and riders and reiterates the choice on behalf of the rider.

The company has faced a number of issues during its growth period where it has expanded into over $500$ cities in $14$ countries across the world. Following significant funding from Amazon in $2019$ the company intends to continue growing.

HR Trend

Deliveroo is one company who work within the $$gig economy$($Kalleberg and Dunn, $2016)$ in that its riders are not classified as $$employees$$ of the company. Rather, Deliveroo treats its employees as $$contractors$$ meaning that they are essentially self$-$employed. Deliveroo refers to their riders as $$independent contractors$$ as they are paid by the job.

Healy, Nicholson and Pekarek $(2017)$ suggest that although gig economy working is a minor feature of the current labour market, $$discussions of the $$future of work$$ how much work will be available, how it will be arrange and the impacts of technological change $$ frequently refer to the gig economy$($p$\mathrm{.}233).$ O$$Connor $(2016)$ discusses the realities of this working pattern within gig economy organisations by exploring the algorithmic management that it utilises to manage employees via the app. Although the use of algorithms to manage workers seems new it is actually founded in theory from over a century ago when organisations hoped to manage the tasks and time people took to complete these tasks $($known as scientific management$).$ However as Rosenblat $(2016)$ argues that although the use of algorithms influences perceptions surrounding management $$Uber$$s model clearly raises new challenges for companies that aim to produce scalable, standardized services for consumers through the automation of worker$-$employer relationships.$$

Many other companies $($such as Deliveroo$)$ have followed this example, using a system of contracting instead of hiring workers as employees. In addition, many companies in other industries $($such as software development, manufacturing and even education$)$ increasingly use contractors rather than employing people on a permanent basis.

Since inception, the company have faced many issues predominantly surrounding workers$$ rights for their freelance riders. However being the first rider and still undertaking deliveries when he can, co$-$founder and current CEO Shu was able to explore challenges the drivers would face and firmly stresses the most important element for everyone involved is flexibility. Additionally Shu shares that in his experience the riders will often $$work$$ with a number of delivery services and will fluctuate between them based on demand $($i$.$e$.$ between Uber Eats, JustEat and Deliveroo$),$ therefore flexibility is key for the riders. In November $2017,$ Deliveroo won its UK based legal fight and the right to not call it$$s riders employees and rather continue to classify them as freelance contractors, unlike rivals Uber. Regardless of this, between May and August $2018,$ Deliveroo focuses on additional perks surrounding riders welfare by providing accident cover, first aid training and medical insurance across the world.

Using independent contractors is an attractive option for many employers because they are not entitled to the same rights and benefits as fulltime employees $($UK Govt., $2017$; Torrington, Hall, Taylor and Atkinson, $2014).$ Key differences between the different types of employees are for example, they do not need to be paid holiday pay or sick pay and they do not need to be provided with the tools to do the job $($e$.$g$.$ a bike in the case of Deliveroo although riders are required to have one$).$ However, this classification of workers has attracted criticism from commentators and politicians throughout the world, including the UK $($The Guardian, $2015).$ Although Deliveroo stress the idea of flexibility is core for everyone involved but most importantly for the riders who come from a wide array of backgrounds with Shu arguing that $...$riders do the job because it$$s flexible$$ and believes if the job becomes inflexible then less people will want to do the job. This corresponds with evidence of the psychological contract of riders who left reviews on Glassdoor $(2019)$ who commented on the $$very healthy attitude towards working fr