INSUBCONTINENT EXCLUSIVE:
Food delivery startup Deliveroo is feeling generous today
The company is handing out equity to all full-time staff members
In other words, 2,000 employees are going to receive the equivalent of $13.5 million in Deliveroo shares.
&Our phenomenal growth and
success has been made possible thanks to the hard work, commitment and passion of the people who make this company what it is,& co-founder
and CEO Will Shu told Reuters
&And that deserves recognition which is why I want all employees to be owners in Deliveroo and to have a real stake in the company future as
we expand and grow.&
This is a great way to prove that you care about your employees
And yet, there are a few caveats.
First, the company is currently worth over $2 billion
In total, Deliveroo is just handing out 0.675 percent of the company to its employees
I&m sure plenty of early employees already have equity.
But those who joined more recently aren&t likely to get rich over this — it
represents a $6,750 equity bonus per employee on average
And shares usually vest after a certain amount of time.
Second, this is the perfect example of the gig economy
In addition to the usual benefits, full-time employees are getting rewarded once again
If you&re a self-employed rider, Deliveroo doesn&t want to thank you.
Arguably, Deliveroo still thinks that riders are disposable
They might be the ones who pick up food in restaurants and hand it to customers, but they will never be full-time employees.
Sure, Deliveroo
and Uber Eats are now providing free accident insurance coverage, but it mostly covers hospital bills
Riders have been asking for better rights, and this insurance package is just a good way to ease the pressure.
Working with contractors at
scale is the backbone of Uber, Deliveroo and many other on-demand startups
This way, startups don&t have to pay the minimum wage or expensive benefits
Startups can also terminate their relationships with their ‘partners& without any consequence.
It a great way to pressure your contractors
in working more for less money
And today move by Deliveroo is further proof that riders are just an afterthought.
