from Hacker News

Deliveroo and Uber Eats Riders Strike on Valentine's Day

by admp on 2/14/24, 9:08 AM with 76 comments

  • by msravi on 2/16/24, 7:46 AM

    This article is so frustrating on data presentation:

    > To make the minimum national wage we have to make at least four deliveries, which is not as easy as it seems.

    On what timeline? Per hour? Per day?

    > Delivery Job UK claimed its delivery riders were braving the "cold, rain and absurd distances" for deliveries paying "ridiculous values", ranging from £2.80 to £3.15.

    On what distance? "Absurd" is not a quantity.

    > ...striking Deliveroo riders wanted an increase to a minimum of £5.

    Per delivery? Per hour? Per kilometer? Per mile?

    > On a Friday night you could make £100 over 4-5 hours, now that's gone

    First data point that actually makes some sense. But what do they make now? Why leave an obvious question unanswered and hanging?

    > With a minimum fee of £2.80, most might only be making three orders an hour, and then they have to subtract their costs too. Some are making £7 an hour, which in London is barely liveable

    Ah, finally!

    Why do news organizations do this?

  • by mulmen on 2/16/24, 8:19 AM

    Gig work in general and food delivery specifically is the poster child for the tragedy of ZIRP. These companies somehow took what pizza shops and Chinese restaurants have been doing profitably for decades and with the power of unlimited free money… made it a losing proposition for restaurants, couriers, customers, governments, and even themselves.

    Food delivery isn’t a technology problem. It’s a trivial hiring and logistics problem. One that can literally be solved successfully by teenagers. There might have been a market for an ultra-lean driver-as-a-service with an SLA suitable for pizza delivery but I’m not even sure that’s viable.

    Pizza shops are vertically integrated, staffed by entry level workers, and still have razor thin margins. It’s not a career, it’s a way to build skills and get a better job.

    What an incredible blunder.

  • by nness on 2/14/24, 9:58 AM

    Deliveroo, and really any gig-economy services, have a real problem — their largest markets are also the ones with significant cost-of-living issues affecting both riders and customers. Customers are spending less, especially in London, and riders need are being priced out of the market (reducing the supply of riders across a number of competing apps.)

    There was a trending tiktok by economist Kyla Scanlon on the topic of "subsidizing affluence" and how these services were able to be offered so cheap because of incredibly low interest rates and investment. Rates have risen dramatically, affecting both the appetite of debt for start-ups and the spending power of consumers. Shareholders recognised this, and it showed through Deliveroo's historically bad IPO.

    Ultimately, I suspect Deliveroo will continue to underpay (relative to the cost-of-living) because of the poverty trap — poor people don't have many options, and being underpaid as a Deliveroo rider may be the only option for survival in London and other similarly major cities.

  • by bawolff on 2/16/24, 7:24 AM

    I kind of doubt this will be effective. You can't get blood from a stone.

    There isn't a whole lot of money to be had in the delivery business. Consumers already feel costs are too high. Its not like these companies are insanely profitable and taking it all for themselves.

  • by Magi604 on 2/16/24, 8:12 AM

    Valentine's day was probably a bad day to go on strike.

    So many couples went out for dinner, the effects from striking delivery workers was probably minimized a bit at least.

  • by forgotusername6 on 2/16/24, 9:35 AM

    A rider posted on Reddit yesterday how much they made by not striking on valentine's day. They made ~£70 from 10 deliveries. In their area at least that strike seemed to more than double the amount they got on average per delivery.

    https://www.reddit.com/r/deliveroos/s/1axFkcCP8J

  • by simonbarker87 on 2/16/24, 9:31 AM

    I really hope these services become unviable and disappear. They all but ruin the in restaurant experience by having half a dozen couriers sat around. They all seem like very nice people just trying to make a living so it’s not their fault but a restaurant isn’t a take-away.
  • by hulitu on 2/16/24, 2:55 PM

    > Deliveroo and Uber Eats Riders Strike on Valentine's Day

    Strike ? But they are not employees. /s