The food delivery platform, Deliveroo said in its annual report statement that it is considering shuttering its operations in Spain.
Deliveroo made the statement to the London Stock Market, where it is listed, yesterday, Friday 30th July, just a few weeks ahead of the change in the law in Spain to comply with new legislation requiring all delivery platforms riders to be given job contracts instead of being treated as freelancers.
The change in the law came after the Spanish Supreme Court ruled that food delivery riders were “false freelancers” as their labour conditions were the same as company employees.
Some freelancer riders have protested against the changes, saying they prefer the flexible work system where they have the potential to earn more money.
The UK based company has around 2,500 delivery workers in Spain.
Deliveroo is one of a number of App-based food delivery platforms including Uber and Just Eat who complained that the ruling would threaten the 700-million-euro industry in Spain.
Some freelancers also protested against the changes, saying they prefer flexible work and don’t want to be hired as staff.
Deliveroo said that “achieving and sustaining a top-tier market position in Spain would require a disproportionate level of investment with highly uncertain long-term potential returns,” and that it wanted to focus on more profitable operations in countries where it is a market leader.
If the company does pull out from the Spanish market it’s Madrid based subsidiary will begin a consultation process with its present staff.
The company was founded by Will Shu and Greg Orlowski in 2013 in London and operates in over 200 locations including the United Kingdom, the Netherlands, France, Belgium, Ireland, Spain, Italy, Australia, Singapore, Hong Kong, the United Arab Emirates and Kuwait.