Just Eat Takeaway.com NV’s UK business is cutting about 1,700 drivers and said it will move to using more “self-employed” drivers in an efficiency drive after growth for the food-delivery app slowed.
(Bloomberg) — Just Eat Takeaway.com NV’s UK business is cutting about 1,700 drivers and said it will move to using more “self-employed” drivers in an efficiency drive after growth for the food-delivery app slowed.
“Just Eat UK is reorganizing and simplifying its delivery operation as part of the ongoing goal of improving efficiency,” the company said in a statement on Tuesday. “As part of this process we have proposed to transition away from the worker model for couriers, which is a small part of our overall delivery operations.”
Just Eat said that for its “Scoober” model — which offers hourly pay, sick leave and vacation benefits — to be effective, it needs a “level playing field.” Rivals such as Deliveroo Plc use the gig-worker model, which treats drivers as self-employed contractors. Just Eat said it will continue using the Scoober model in continental Europe.
About 170 people who worked in the operations team behind the UK Scoober business will also be eliminated, the company said. The drivers impacted by the cuts will be offered six-weeks’ pay.
Just Eat is among the food-delivery companies that experienced surging orders during the pandemic but have since grappled with a slowdown after restaurants reopened for in-person dining. The firm said the changes will not impact its service for partners or customers.
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