Deliveroo and Foodora are accused of using sham contracts


The charges were prefered to Deliveroo and Foodora. These companies are accused of using sham contracts for bicycle delivery riders. Food delivery companies Deliveroo and Foodora have been accused of putting bicycle delivery workers on sham contracts. They avoid paying them properly.

deliverooThe salary or riders is $ 10 an hour to collect food and deliver it to the customers of deliveroo. They get $ 14 an hour plus a small delivery fee working for foodora.

Customers can order food from restaurants online. This order is delivered through the businesses’ networks of bicycle couriers. The delivery is usually made by the nearest available rider being notified via a smartphone application. Deliveroo has hundreds of cyclists which have signed up to work for them. This British company costs $ 715 million. Foodora has German parent company Delivery Hero and it is worth more than $ 4 billion.

foodoraFairfax Media can reveal that the riders which wear the company’s unifirms and use their food boxes, do not get even the minimum wage, penalty rates or superannuation and are not cover by Work Cover. They get their salary as independent contractors. As it was said by the Deliveroo spokeswoman it paid its freelance riders $16 an hour plus $2.50 per delivery. Besides this company confirmed that other entitlements are not paid.

The recent Deloveroo rider contract has showed that there is no hourly rate. Deliveroo bicycle couriers who signed this contract earn only $ 10 on hour on some days .  And Foodora claims that new riders get $ 14 an hour and $ 4 per delivery. However we do not know if the company pays weekend penalty rates. There is only information that it paid a “surcharge” during busy periods. Though the companies do not pay extra for work on weekends.

The spokesman said that the ombudsman helps to resolve a dispute. Many riders are backpackers on working holiday visas or international students.