LONDON (Reuters) – A trade union has called on UK riders of Deliveroo to go on strike when the food delivery service launches on the stock market next month, saying on Sunday that the action would highlight dissatisfaction with business model and approach to employee rights.
Deliveroo, which has messaging with turquoise uniforms delivering chicken kormas and American hot pizzas is a common sight in many suburban areas of Britain, set for Britain’s first-largest stock market festival in near ten years after establishing a share price range valued at up to $ 12 billion.
But some investment firms have said they will not participate in the initial public offering (IPO). For example the Aviva insurer identified a lack of rights for riders as an investment risk as the company may have to change their business model.
Deliveroo said investor demand had continued to pick up since its roadshow began on Monday, and said the views of the union announcing the strike, the British Independent Workers Union (IWGB), did not , representing the majority of cyclists.
The IWGB lost a previous legal challenge to Deliveroo in 2018. The case sought to claim rights as the UK’s lowest wage for riders, but the court ruled that cyclists were self-employed.
“Investing in Deliveroo means connecting yourself to the spying and unsustainable business model,” IWGB President Alex Marshall said in a statement, adding that the strike was planned for April 7, coinciding with the IPO.
The rights of people working in the so-called “gig economy” have been growing in Britain. Uber Ride-hailing App Uber granted its employees more entitlements earlier this month after losing the Supreme Court case.
Deliveroo said job satisfaction levels among its 50,000 self-employed riders in Britain were at an all-time high, and their flexibility was a major draw.
“Thousands apply to work with us every week, reflecting the strong demand for our on-demand model,” a company spokesperson said.
Reciting with Alistair Smout; Edited by David Holmes