British meal delivery service Deliveroo is planning to pull out of the Netherlands, citing its weak market position and the high volume of investment needed to make improvements.
The Netherlands contributed less than 1% of total gross transaction value in the first half of this year – or less than €20 million – the company said during the presentation of its first half earnings.
The company has been under fire in the Netherlands since 2017 because of its policy of treating its riders as freelancers. Several courts have said this practice is illegal and that delivery workers had the right to a formal contract, holiday pay and pension contributions.
The Supreme Court is currently considering the case, but in June, the court’s most senior advisor said that couriers should be treated as regular workers.
The company said it will now talk with the ‘relevant stakeholders’ about its withdrawal from the Netherlands and that it expects the process to be completed in November. Deliveroo had recently signed a deal with the Albert Heijn supermarket group to trial the delivery of its groceries.
The food delivery company reported a pretax loss equivalent to €174 million in the first half compared to a €112 million a year ago.
Last month, fast grocery delivery service Zapp stopped operations in the Netherlands citing uncertainties due to changing rules and regulations concerning dark stores.
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