LONDON, UNITED KINGDOM - 2021/01/03: Deliveroo courier rides along the Regent Street delivering ... [+]
An Italian court ruled that an algorithm once used by Deliveroo to assess riders on its platform was discriminatory.
The ruling found that the algorithm, which was used to evaluate delivery riders on the platform, was in violation of labor laws because it did not differentiate between the reasons a rider may have for not working. For example, it evaluated a rider whether they were not working because they were sick or simply choosing not to work.
The court in Bologna said that Deliveroo would have to pay €50,000 to each affected rider. CGIL, the country’s largest trade union, said the decision was an important one in shoring up protections for gig economy workers.
"This judgement refers to a historic optional booking model which is not used by Deliveroo in Italy or other markets," a Deliveroo spokesperson said in a statement, adding that the system is no longer in use.
"Riders have complete flexibility to choose when to work, where to work, for as little or as long as they want. This means that there is no booking system and no obligation to accept work."
Deliveroo’s general manager for Italy told Italian news outlet Ansa that the ruling was based on a hypothetical evaluation.
The company defended its stance on self-employment for its riders: "We offer self-employment because this offers the flexibility riders want." It cited a survey that said more than 80% of riders value work flexibility.
Deliveroo as well as other on-demand delivery companies have still faced challenges to their self-employed model for gig economy workers in various markets with mixed results. The UK High Court previously ruled in Deliveroo’s favor in a case over whether riders had collective bargaining rights. On the flipside, Spain’s Supreme Court found in September that riders for Deliveroo and Glovo should be classed as employees.
