Why did Deliveroo choose for the freelance model?

Consumer side

In today’s modern gig-economy, the consumer desires to have exactly what, when and where she/he wants it. For Deliveroo, more than 40% of our orders are placed within 1,5 hours. In order to meet this unpredictable demand, still deliver a good service to our customers and be efficient, Deliveroo needs to have more flexibility. This means Deliveroo needs lots of riders on the road when many orders are placed and less riders when customers order less: match supply and demand dynamically. The freelance model allows Deliveroo to do this.

Rider side

Deliveroo chose for the freelance model because it gives riders freedom. This way of working allows riders to structure their work with Deliveroo around their social lives, other jobs and hobbies whilst still making good money. In the Netherlands 82% of the riders are logged in less than 10 hours per week and 85% of the Deliveroo riders value flexibility and are very happy to hop on their bicycles whenever they decide to.

Deliveroo has a social duty

Insurances

But does this mean the rider isn’t insured any longer? No, as a freelance rider working with Deliveroo you are exactly insured the same way as an employed rider. Like any other company, Deliveroo has a duty of care. This means Deliveroo must ensure that its employees and the freelancers they cooperate with are taken care off and work safely. If this is not the case, Deliveroo has to take responsibility for it. Deliveroo will therefore take responsibility for damages that occur as a result from an accident. After the rider notifies Deliveroo, Deliveroo will check their claim and will make sure that the damages are covered.

Other social securities

What about other social securities you normally get as an employee like: pension, vacation fund, incapacity benefit pay etc.? As a freelancer working with Deliveroo it is completely up to you whether or not you want to have social securities. If you like, you can get all social securities you wish for by joining ‘Verloning’. You’ll then still have all the benefits of a freelancer but you don’t have to register at the Kamer van Koophandel while also maintaining full control over both your financial security and income.

Interviews about the new freelance model: