Deliveroo has been placed under judicial administration in Italy amid accusations of exploiting approximately 20,000 riders, many of whom are paid below the poverty line.
Deliveroo has come under judicial administration in Italy due to serious allegations of labor exploitation, particularly concerning its delivery riders. Milan's prosecutor, Paolo Storari, initiated urgent judicial oversight, paralleling an earlier case involving competitor Glovo. The investigation suggests that around 20,000 riders across Italy, including 3,000 in Milan alone, have been paid less than the poverty line, with some earnings reported to be nearly 90% lower than the expected minimum compensation or collective bargaining agreements.
This oversight will involve an appointed administrator tasked with rectifying the situation for the riders. Deliveroo Italy and its sole director, Andrea Giuseppe Zocchi, are currently under investigation for these charges, which claim that their compensation methods violate both local labor laws and the Italian Constitution. The findings of the case assert that riders are not only economically vulnerable but also subject to systemic exploitation by the company due to their reliance on this work for survival.
The implications of this case could extend beyond Deliveroo itself, as it highlights broader issues of worker rights and labor practices within the gig economy in Italy. As the judicial process unfolds, it could lead to significant changes in how such companies operate, with potential repercussions for legislation affecting gig workers. The ongoing scrutiny might inspire other instances of labor exploitation to be addressed, ensuring a fairer work environment for all involved in the gig economy.
