Riders Get 40% Raise as Deliveroo Faces Scrutiny

Deliveroo's Italian operations will implement a 40% increase in rider pay, raising the minimum hourly wage from €10 to €14. This decision follows a period where Milan prosecutors placed the company under judicial administration in February due to alleged labor exploitation, with many riders reportedly working excessive hours.

The company has outlined additional safety measures, including caps on working hours, in an effort to exit the judicial supervision. While Deliveroo views these steps as crucial for resolving the criminal investigation, prosecutors have not yet publicly responded, and a formal request to lift the administration has not been made.

This situation mirrors that of Glovo, another delivery service also placed under court administration in Milan. Glovo announced similar pay improvements in May, including a 40% increase to at least €14 per hour. However, prosecutors deemed these measures insufficient, expressing concerns that workers were still not compensated for a significant portion of their hours and recommended hiring riders as company staff rather than self-employed.

Glovo stated it would present arguments to the court demonstrating the adequacy of its measures and pledged continued cooperation with authorities. The legal scrutiny highlights ongoing debates regarding worker rights and compensation within the gig economy.