Multinational food delivery company to move away from gig economy workers

In a move which could transform the nature of the food delivery industry, Jitse Groen, the CEO of Just Eat Takeaway, has recently announced that he would like to shift the firm’s employment model away from that of a gig economy.

Whilst gig economy workers can enjoy almost total flexibility, working when and where they want, the employment model lacks the stability and protection that ordinary workers benefit from. That mainly being a stable monthly income, and other benefits such as sick and holiday pay.

The gig economy model, which has grown in popularity alongside the rapid development of internet technology and global smartphone usage, allows a worker to pick and choose work assignments (gigs), only getting paid for the ones they complete. In the case of food delivery, a worker gets paid a certain fee for collecting an order from a restaurant and then delivering it to the customer.

With Just Eat Takeaway set to merge with their US rival Grubhub, the firm will become the largest food delivery company outside of China. In light of this merge, along with a surge in demand during the first six months of this year, CEO Groen has expressed his desire to improve the quality of life of his delivery workers by offering stable employment with increased benefits.

Whilst this will be good news for some, many workers rely on the nature of the gig economy to reap high rewards for maximising their output. In addition, the flexibility draws many part-time workers who use the job as an additional source of income.

THINK LIKE AN ECONOMIST!

Q1. What is meant by the term ‘gig economy’?

Q2. Explain one advantage of being a gig economy worker.

Q3. Explain one disadvantage of being a gig economy worker.

Q4. Discuss other industries which are suitable for the gig economy employment model.

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TheCuriousEconomist

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