Food couriers demand better wages and working conditions | Yle news

Workers unite

The impasse over wages and working conditions in the food delivery sector is a harbinger of similar problems in other digital sectors.

On Tuesday, more than seventy drivers from the Bolt taxi service demonstrated in Helsinki.

The drivers protested because the commission charged by Bolt – which has risen to around 23 percent – ​​is so high that they say even long hours do not provide a decent income.

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Unions and worker strikes are a relatively new phenomenon in these sectors, as couriers and taxi drivers generally operate as individuals and not as employees in the traditional sense of the word.

These platform-based service providers – such as Bolt, Foodora and Wolt – charge a commission of between 20 and 30 percent of revenue, according to an analysis by Yle. For food delivery companies, such as Foodora and Wolt, this commission relates to the fees charged to restaurants for delivering their products.

Olivia Maurya lecturer at the University of Helsinki, told Yle that the gradual increase in commissions and reduction in brokerage fees is a hallmark of the sector as companies try to grab as much of the pie as possible.

The companies usually start with low commissions and generous compensation, Maury noted, but once they establish their position in the market, the numbers start to change.

Wolt: The majority work part-time and are satisfied

Yle contacted representatives from Wolt, Bolt and Foodora for their thoughts on the couriers’ calls for better wages and conditions.

The response from all three companies was broadly the same: they said their businesses needed to cover overhead costs, develop and diversify business lines, and keep prices competitive for customers.

Regarding couriers’ calls for better wages, Wolt said it has been advocating for better regulation of the sector for years, further noting that it has been active in negotiations with PAM on clarifying the roles and responsibilities for couriers with which it collaborates. .

Based on its own surveys, the company added that the majority of its couriers work part-time, or an average of about 14 hours per week, and are satisfied with the work and their status.

All three companies also argued that the commissions they charge restaurants and taxi drivers are reasonable.

“It is clear that we could not operate without drivers. Agency fees are increased very carefully and would only be done if we were sure that this would also have positive effects on drivers in the long term,” said Bolt’s country manager Finland. Mikael Uusivuori Yle said.

“The level of commissions charged to restaurants in Finland has never been as low as it is today. We have different cooperation models and options for different needs,” said Ilari Nikkucommercial director of Wolt Finland.

“Consumers want to order food to their homes via platforms. This is a low-margin business and most of the commission’s ‘commission’ goes to expenses,” said Einar ToivonenFoodora’s vice president of restaurants and strategy.

While all three companies are considered giants in their arenas – with major multinational backers in the case of Wolt and Foodora – all three reported losses for 2023, and each operates in fiercely competitive markets.

“We must be able to operate sustainably in the long term. Decisions are always made per partner,” says Nikku.

Part-time good, full-time bad

Recent developments in the sector have attracted the attention of researchers Laura Seppanen from the Finnish public health authority THL, which notes that courier work can be useful if used to supplement other sources of income.

She cited the results of a survey conducted last year by Statistics Finland, which found that 76 percent of couriers felt the pay they received was fair. The majority of respondents in the survey did courier work as a side job and indicated that they had control over the number of hours worked.

“When there are other sources of income, this kind of work shows itself from its best side. Many people find it very good and liberating,” Seppänen noted, noting, however, that the situation is different if someone depends solely on their livelihood is from delivery work. .

“When app-based work is the only source of income, the unfairness becomes more apparent,” she said.

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The amount of work, and the amount of money you can make, depends on a number of uncontrollable factors, such as customer demands, how many couriers are working at the same time, and the app’s algorithm.

“On weekends it is busy. But on Monday or Tuesday, hardly anyone orders anything, there is no food to deliver and there is no money,” explains Nkunda, chairman of the couriers’ union.

According to Statistics Finland, around 130,000 people will have done app-based work in the country at least once in 2022. Wolt, for example, has about 6,000 active couriers, Nkunda said.

However, food couriers have seen their earnings decline, while Bolt drivers say they don’t even know how much they will make at a given rate.

“Everyone would like some certainty and transparency about the calculations on which the income from their work is based,” says Olivia Maury of the University of Helsinki.

Nkunda noted that many immigrants choose to work with Wolt or Bolt because there are few or no alternatives. Some need to supplement their income to meet the conditions of their residence permit.

“Many have families and more than two children. Livelihoods are tight,” says Nkunda. “We hope that through the negotiations there will be changes and that we will get help for the hundreds who do not earn enough.”

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