Deliveroo serves up 1,000 jobs in new delivery-only kitchen venture

(c) Sky News 2017: <a href="http://news.sky.com/story/deliveroo-serves-up-1000-jobs-in-new-delivery-only-kitchen-venture-10826178">Deliveroo serves up 1,000 jobs in new delivery-only kitchen venture</a>
 

Deliveroo is embarking on a new food delivery venture it hopes will create 1,000 jobs.

The technology firm, which currently operates an app-based delivery service from established restaurants, said it was to create 30 sites across the UK from which a partner business could provide meals for delivery only.

It said the platform, called Deliveroo Editions, followed a successful trial and would allow for more than 200 restaurant businesses to operate from the locations at a fraction of the cost of high street start-ups.

Each business would agree terms on a case-by-case basis, Deliveroo said, adding that it would provide the delivery drivers and marketing support.

Chief (Taiwan OTC: 3345.TWO - news) executive, Will Shu, said: "By drawing on the unique technology that motors Deliveroo, we are able to identify gaps in the market and curate bespoke restaurant selections, meaning more choice for customers and the chance for our partners to scale.

"This is the biggest development in the market since Deliveroo first launched.

"If you think that it costs £500,000 to £1m to put up a full-service restaurant, for them to operate one of these (delivery-only) restaurants, it is a fraction of that - the cost is much lower."

The company, like many rivals in the so-called gig economy, has been in hot water with MPs (BSE: MPSLTD.BO - news) over its contracts since an employment tribunal ruling last year that Uber drivers should get holiday pay and minimum pay.

Deliveroo, which has over 30,000 riders on its books, has since told an inquiry by the Work and Pensions Committee that it will remove clauses that require its delivery workers to agree they are not employees and they will not challenge their self-employment status in court.

It is also facing potential legal action from a group of Deliveroo riders seeking improved employment rights.

Mr Shu said: "On the contracts, what we are doing is aligning the contracts with operational reality.

"We are really proud of the flexibility that we offer. In London, the average rider earns £10 an hour, which is more than the living wage, but they want flexibility around their working.

"We want to work with Government, maintaining flexibility but also offering entitlements. What that looks like in the future is hard to say."

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