The delivery food delivery platform Deliveroo plans to cease its operations in Spain, a market that represents less than 2% of the company’s gross value of transactions (GTV) in the first half of this year.
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Specifically, the platform announced on Friday its intention to consult among its employees about the end of their activity in the Spanish market. Deliveroo currently operates in 12 markets around the world, with the vast majority of the company’s gross transaction value (GTV) coming from markets where it ranks first or second.
The company has concluded that achieving and maintaining a top-level market position in Spain would require a “very high” level of investment with a “very uncertain” potential long-term return that could affect the economic viability of the market. for the company.
The reality is that with a false self-employed model, Deliveroo has never made money in Spain, where there is strong competition for the food delivery market. After the last sentences of the Supreme, that supported the workforce of the riders for the second time after rejecting the appeal filed by Deliveroo against the judgment of the Superior Court of Justice (TSJ) of Madrid that considered false self-employed more than 500 distributors of the multinational in Madrid and the approval of the Rider Act, Deliveroo’s competitive position was one of the weakest.
The proposal to end operations in Spain reflects, according to the company, its intention to focus investments and resources on the other markets in which it operates, continuing with the growth of its network of consumers, restaurant and supermarket partners. , as well as ‘riders’, and expanding its market share both in new cities and in cities where it already operates.
Deliveroo’s consultation on the cessation of its operations in Spain will be conditional on the result of a consultative process with the affected employees and with the ‘riders’. Deliveroo expects the collective consultation process to start in early September and the company will work with all stakeholders and prepare all the necessary documentation for this.
In the event that the company decides to terminate its operations after the conclusion of the consultation process, which will last approximately one month, the company will ensure that the riders and employees have an adequate compensation package that complies with all local regulations and legislation.
This proposal does not affect, as explained by the company, the guidelines for the whole year previously communicated on the annual growth of the group’s GTV and on the gross profit margin.
“The decision to propose the cessation of our operations in Spain has not been taken lightly. We want to thank all the restaurants that have worked with Deliveroo in Spain, as well as our valued customers. We show a special thanks to the thousands exceptional and always willing riders who have chosen to work with Deliveroo, as well as our talented and fully committed employees. They will all be supported during the consultation period, “said Hadi Moussa, Deliveroo’s Chief International Business Officer.