California’s Uber Eats, Just Eat, Deliveroo & Foodinho-Glovo fined €733mn in Milan

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California’s Uber Eats, Just Eat, Deliveroo & Foodinho-Glovo fined €733mn in Milan

Earlier on Wednesday, prosecutors in Milan said that they had ordered four food delivery companies to pay off a stark upsum of €733 million in punitive measures and to officially hire as many as 60,000 workers, marking up the latest in a string of hindrances that the online food delivery giants were facing off in the euro zone.

In point of fact, latest verdict from Milan prosecutors came against the backdrop of an investigation, rooted back in the July of 2019, on four online food delivery companies such as Spanish food delivery app Foodinho-Glovo alongside the Italian arms of online food delivery companies Just Eat, Uber Eat and Deliveroo, while the investigation was found that the working condition in aforementioned food delivery companies were inadequate, the prosecutors said in a statement.

On top of that, recent order from Milan prosecutors to hire employees officially instead using contract workers for food delivery apps, would likely to have major repercussions and might be mirrored in other eurozone countries, suggested industry analysts.

Uber Eats, Deliveroo, Just Eat fined in Italy over improper working condition

The investigation targeting aforementioned food delivery apps had also revealed that the workers had been operated by an IT platform that was ranking the riders according to their performances.

Aside from that, adding that the food delivery apps had been using their self-employed contract workers as a part of the organizations, Deputy Prosecutor Tiziana Siciliano said in a briefing, “The vast majority of these riders are employed with occasional self-employment contracts ...

but it emerged without a shadow of a doubt that ... they are fully included in the organisation of the company. This system actually forces the rider to accept all orders in order not to be demoted in the ranking and then have less work. This is the reason why it is impossible to take holidays or sick leave.