Delivery workers from two online food delivery aggregator platforms, Deliveroo and Talabat, went on strike, an unprecedented move in the UAE, on May 2 and May 9 respectively to demand better wages.
In the case of Deliveroo, riders protested when the platform indicated a pay cut but quickly retracted stating that plans around change in pay structure were being put on hold.
Close on the heels of this event several Talabat riders went on a strike to demand better pay in view of increased fuel prices and a rather unsustainable commission-based pay per order structure. The riders receive AED7.5 per order, while contractors who hire them get paid much more.
Even as social media was flooded with comments demanding better treatment and fair pay for the riders, nothing changed as they eventually went back to work.
“In the hope to raise the per order commission by a couple of dirhams [from the current AED7.5 per order] we went on a strike,” said a Talabat rider from Punjab, India, who didn’t want to be identified.
“But nothing has changed for us yet. We kept receiving threats from the contractor that our visas will be canceled. That’s why we had no choice but to go back to work at the same commission structure,” he added.
A rider from Pakistan echoed him: “Even during the peak summer months we’ve to first stand in the heat waiting for orders and then rush to deliver them in time. If the job doesn’t even pay us well, what is the point.” A sole breadwinner for his family, he is sometimes unable to send enough money home.
The lack of empathy, the riders allege, is glaring.
“In this modern culture of everything now, apps have vied to give us faster delivery times, requiring large fleets, and more choice, encouraging a discount culture amongst restaurants to be visible amid stiff competition,” stated Tahir Shah, founder of food brand Moti Roti. “In the process, the riders on whose back the businesses are built bear the brunt.”
Asked if there’s a need for organised representation to uphold the riders’ rights for real change to happen, Shah said there should be advocacy from somewhere for the riders.
“We’ve to raise consumer awareness by culturally humanising riders on whom our modern lives are built,” Shah said. “In turn this will create the pressure for companies to start acting in the interests of riders they employ.”
Deeper look necessary
Soon after the strike, several consumers took to social media announcing their decision to cancel Talabat subscriptions. But the fault doesn’t lie with one platform alone.
The same model is followed by most food aggregator platforms. The same riders keep rotating from Talabat to Zomato to Deliveroo. It’s up to the companies to implement changes to improve the riders’ plight.
“The delivery platforms must become humane”, emphasized Dubai resident and logistics industry expert Shailen Shukla.
All benefits that are accrued to an employee based on local country laws should be available to the riders too, he pointed out.
“It’s only when companies evade these laws, riders face the brunt as they earn as much as they can run and eventually get caught in a vicious circle. The ideal solution would be to offer a base salary plus incentives to encourage productivity.”
Systemic change needed
The gig economy is coming under pressure from governments around the world as they look to establish protective and sustainable policies and regulations, said food critic and blogger Food Sheikh.
“There are already very strong regulations in place in the UAE and the government has done an excellent job in staying ahead of the fast pace of tech progress. It is up to the delivery businesses themselves to ensure that they are following the regulations,” he said.
Dubai-based lawyer Majdel Musa, Founder & Executive Director, Launch 971 who briefly worked in the food delivery industry observed that the food industry by nature is not the one to be regulated.
“However, when an industry does not regulate itself and instead causes harm to the other parties involved, the authorities may be required to step in,” she said. “The authorities may need to issue regulations for both the rider outsourcing agencies and the aggregators. If regulations are eventually issued, the key will be enforcement of those regulations.”
Isobel Archer, Gulf Programme Manager at Business & Human Rights Resource Centre agreed that the systemic change will only happen if the gig giants address the root causes of worker exploitation.
“Rideshare platform companies must recognize their employment relationships with workers wearing their brands and ensure they have access to living wages, fair and transparent contracts, and redress for recruitment fee-charging, including ensuring third parties bear the cost of visa renewals,” she said.
“Both Deliveroo and Talabat have said they will investigate allegations of fee payment to third parties they partner with, and they must be held true to that commitment,” she added.
Riders with independent restaurants
Meanwhile, riders hired by third-party contractors but working for independent restaurants are “somewhat” better off.
“Unlike riders with the delivery platforms, I’m at least not in a constant rush to do deliveries. I have a fixed monthly salary of AED2,800 as opposed to working on a commission basis,” said Pakistani rider Ahsan Javed (25) who facilitates deliveries for a restaurant in Jumeirah Village Circle. “I also get one free meal from the restaurant.”
Javed has had to pay AED6,000 for a two-year residence visa. He pays AED500 for rent, AED200 on meals at a mess, AED600 for insurance, and a one-time sum of AED200 for helmet and safety kit. The contractor bears the cost of fuel, which was approximately AED800 last month.
“However, paying fines is a big expense. During Ramadan I had to pay around AED400 as parking fine because sometimes it’s difficult to find space in the designated parking areas and we’ve to rush because customers get angry if deliveries arrive late,” he explained.
Need for ethical alternatives
If anything, there’s a clear need for ethical alternatives to the food delivery majors for consumers to order from.
Food tech platform Locale is a good example. With its own proprietary tech stack and fleet of riders, the platform is robust, ethical, and has joined hands with other like-minded food brands to offer customers more choice.
During the height of the pandemic in 2020, Food Sheikh launched DeliverDXB in conjunction with mobile ordering and payments platform ChatFood. It is a delivery aggregator platform that allows diners to order directly from the restaurants, helping them bypass high commissions charged by other aggregators.