Deliveroo has been accused of paying its drivers less than the £12-an-hour minimum wage it agreed upon earlier this year as part of a union deal. The agreement, made with the GMB union, was the first of its kind to set a pay floor in the gig economy.
An analysis by Rodeo, an app that tracks payments for gig economy workers, reviewed 531 food orders completed over the last four months. It found that 278 of those orders paid below the agreed rate.
Martin Wills, a Deliveroo driver based in Exeter, asked Rodeo to examine his delivery records after feeling he was not being fairly compensated. Wills, who has been working for the company since 2021, claimed nearly half of his orders fell below the agreed pay floor. “I’m fed up with big companies breaking their promises to working-class people, and I’m determined they should be held accountable,” he said.
Wills, who joined the gig economy to gain flexibility in caring for his four children, said Deliveroo’s algorithm does not properly account for real-world conditions, such as waiting times, traffic, or customers taking longer to answer the door. He cited an instance where he was sent to collect groceries from a supermarket 17 minutes before the order was ready, reducing his hourly rate to £12.54—below the agreed pay floor for car drivers, which is £12 plus £4.27 for vehicle expenses.
Concerns Raised Over Pay Structure
Alfie Pearce-Higgins, co-founder of Rodeo, noted that the analysis showed Deliveroo was not consistently meeting its pay commitments. “We have looked at a small sample of Deliveroo’s total deliveries and found hundreds of examples that are below the supposed pay floor,” he said.
Wills also expressed concerns about the feasibility of reaching the £12 rate without exceeding speed limits, adding that he would have had to drive at 60 miles per hour in a 30-mile-per-hour zone to meet the target.
Deliveroo's Response
A spokesperson for Deliveroo said, “We guarantee all riders earn at least £12 an hour while completing a delivery, and the majority earn far more than this. This is audited annually to ensure compliance with this policy.” The company emphasised its commitment to flexible work and providing attractive earnings alongside benefits such as sickness cover, insurance, and training opportunities.
Union Push for Fair Pay
Deliveroo entered into a voluntary agreement with the GMB union in 2022, amid legal challenges to its employment model. The Independent Workers’ Union of Great Britain (IWGB), which led strikes against the company, criticised the deal as a "cynical PR move." However, Deliveroo’s founder and CEO, Will Shu, maintained that it would provide riders with “guaranteed earnings.”
Despite promises of fair pay, reports suggest some drivers are still earning below the national minimum wage, as the company’s pay calculations do not factor in waiting times between orders. Some riders have reported earning as little as £2 an hour over the entire time they are logged into the app.
Calls for Better Pay Enforcement
Tom Warnett, the GMB’s national lead for Deliveroo, urged the company to ensure drivers are paid fairly for every job. “Deliveroo has reached profitability with the hard work of tens of thousands of couriers,” he said. “They deserve a share of that success with fair pay and treatment.”
While the Labour government had initially proposed a single employment status for all workers, including those in the gig economy, the plan has since been scaled back. The government has instead opted to consult on a simpler employment framework.
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