Amazon invests in delivery start-up Deliveroo

Deliveroo has announced that Amazon is leading a new $575MM Series G shared funding round. This will make Amazon the largest investor in this round.
Amazon joins existing investors T Rowe Price, Fidelity Management and Research Company, and Greenoaks.
According to the company, this series of funding will bring customers the food they want whenever and wherever they want it, offering even more work for riders, and helping restaurants to grow their businesses by reaching new customers.
“Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organisation. This is great news for the tech and restaurant sectors, and it will help to create jobs in all of the countries in which we operate,” Will Shu, founder and CEO of Deliveroo said.
“We’re impressed with Deliveroo’s approach, and their dedication to providing customers with an ever increasing selection of great restaurants along with convenient delivery options. Will and his team have built an innovative technology and service, and we’re excited to see what they do next,” Doug Gurr, Country Manager, Amazon UK said.
The new investment will contribute to:

  • Growing Deliveroo’s engineering team based in its London headquarters
  • Expanding Deliveroo’s delivery reach in order to continue offering its service to new customers
  • New innovations in the food sector, for example through delivery-only super kitchens “Editions”, as well as new formats that will help restaurants expand to new areas at a lower cost and lower risk, bringing more choice to local neighbourhood
  • Increased support for restaurant partners, and new tools to offer riders flexible and well-paid work

Read more about Deliveroo in Australia here.

On-demand, gig… or just plain exploitation and slavery?

The TWU is calling for the regulation of the ‘on-demand’ economy as Fair Work takes sham-contracting case against Foodora.
The Transport Workers’ Union is calling for urgent regulation of the on-demand economy after the Fair Work Ombudsman announced legal action against Foodora over sham-contracting of bike riders.
The TWU is already fighting sham-contracting at Foodora after taking several cases of unfair dismissal. A test case hearing will be held in Sydney on 3-4 July.
The union also criticised Foodora over leaked internal emails that showed the company was aware it was engaging in sham-contracting. A survey of riders has shown three out of every four riders are paid below minimum rates.
“We welcome the Fair Work Ombudsman’s legal action against Foodora, a company that has openly flouted the law by denying its workforce’s rights.
“But action must go broader than just one company and just a few riders. All workers deserve the rights and protections that generations have fought hard for.
“The on-demand economy is a tired example of old-fashioned exploitation with tech billionaires reaping the benefits at the community’s expense. The Federal Government is refusing to regulate rights for all workers, regardless of being alleged contractors,” said TWU national secretary Tony Sheldon.
“The sham-contracting comes as no surprise to the thousands of delivery riders who are working in the on-demand economy. Food delivery companies control all aspects of the work riders do, demanding they work shifts and penalising them if they don’t work where and when the companies want them to.
“The flexibility is all on the side of the companies with the riders bearing all of the risk. Riders have no superannuation, no guaranteed minimum rates and can work shifts for no pay at all. They can be sacked without warning and for spurious claims as the companies argue they have little or no rights. This area is crying out for regulation,” he added.
The TWU recently signed agreements with Coles and Airbnb to ensure fair and safe conditions for workers in the on-demand economy.
Riders have protested in Melbourne and Sydney in recent months over pay and conditions.
The rider survey also found:

  • Almost 50% of riders had either been injured on the job or knew someone who had.
  • Over 70% of riders said they should get entitlements such as sick leave.
  • 1 in 4 riders (26%) work full time hours (40+ hours per week).
  • 3 in 4 (76%) riders work 20 or more hours per week.
  • Over 26% work more than 40 hours a week.
  • The average age is just under 26 years.

 

Toll, Coles sign workers' rights agreements with TWU

Toll launches global Charter in Australia  
Following Toll’s agreement with the global union ITF (Workers are valued: Toll signs worldwide union agreement), a global Charter ensuring safe and fair working standards across Toll Group’s global network has been launched in Australia.
The Charter will cover all Toll employees across its 1,200 sites in 50 countries, follows negotiations between Toll, the Transport Workers’ Union, the International Transport Workers’ Federation (ITF) and its other affiliated unions.
Through the Charter, launched at TWU National Council in Adelaide, Toll has committed to abide by international labour standards. The ‘global charter of principles’ outlines guiding principles by which crucial decisions will be made around the working conditions for Toll workers focusing on health and safety standards, business strategies and initiatives, improvements in working conditions in developing countries and the development of projects that increase industry standards and safety.
Under the charter, Toll, which represents 44,000 workers in road transport and distribution, logistics, supply chain and warehousing, has committed to making a significant investment in the development and implementation of a global project that will raise standards and safety in its main sectors.
Coles & TWU sign agreement to ensure safety and fairness in the Coles supply chain and on-demand economy 
Coles and the TWU have signed two important statements of principles that will ensure safe and fair conditions for workers in the Coles supply chain and the on-demand economy.
The first statement, signed at TWU National Council in Adelaide by Coles managing director John Durkan and TWU National Secretary Tony Sheldon, includes five principles to ensure safety and fairness for transport workers within the Coles supply chain.
These principles include: the ongoing promotion of safety and fairness; transparency on supply chain information; ensuring workers are treated fairly and have the right opportunity to contribute to a collective voice; education, training and consultation of workers on safety, and initiatives to ensure safety in the industry more broadly. The five principles will underpin a Charter between Coles and the TWU.
A separate Statement of Principles about workers in the on-demand economy recognises that workers in the on-demand economy are involved in a rapidly changing workplace environment, but this doesn’t mean artificial terms for workers should limit their access to appropriate entitlements such as leave, proper payment, superannuation, safe working conditions and representation.
“This is a major positive for all transport workers – whether in traditional industries or the on-demand economy. Coles and the TWU are saying through these principles that there is no higher priority than safety and fairness in the Coles supply chain and the on-demand economy,” said TWU national secretary Tony Sheldon.
“This indicates to the community what can be achieved with good corporate citizens on board,” he added.
Coles managing director John Durkan said: “Our business, and the businesses of our thousands of Australian suppliers, rely on the skill and the efforts of the workers in our supply chain. As our business evolves to meet the constantly-changing needs of our customers, we are also increasingly engaged with the on-demand economy.
“The people who work in these sectors make an invaluable contribution not just economically, but to the community as a whole. We are proud to make this commitment that their safety and fair treatment will always be a top priority for Coles.”
 

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