Did somebody say workers rights at Menulog?
Menulog is launching a pilot that classify its riders as full employees - unlike UberEats and Deliveroo.
What's the key learning?
- The reclassification of workers acts as a differentiator against competitors UberEats and Deliveroo.
- The precedent was set in the UK, after the Supreme court ruled Uber drivers should be considered employees not contractors.
- If the trial is successful The Australian Council of Trade Unions (ACTU) will recommend Australians use Menulog instead of competitors.
WTF is fair compensation?
UberEats, Deliveroo and Menulog have always classified their riders as contractors. This means no sick leave, no super requirements, no annual leave.
Menulog has been reinvigorated, thanks to Snoop Dawwgy Dawwg, is going to launch a new trial. They will be employing their delivery riders on minimum wages and entitlements - calling it a “moral obligation”.
This represents a pretty huge change in how gig economy companies do business.
SO, WHAT IS THE KEY LEARNING HERE?
In Australia’s food delivery market, you’ve got three big players - there’s UberEats, there’s Deliveroo, and there’s Menulog. And now, Menulog has broken free of the the others with this model.
In the UK, Uber has been forced to bring in minimum hourly rates for its 70,000 drivers after the Supreme Court held they were actually "workers" and not contractors. Menulog has acknowledged the ruling in the UK and is raking in the changes here in Australia.
If being first isn't a bonus enough The Australian Council of Trade Unions (ACTU) said if this becomes more than a trial, they will call on all Aussies to ditch other delivery apps and only use Menulog.