The parent company of Deliveroo is Roofoods Limited. They've just published accounts to 31 December 2016. This is some profit and loss account:
I am sure the company will argue that a gross profit margin of 0.845% -or near enough nothing, meaning that in effect they only just cover the cost they pay out to directly deliver food - is just fine at this stage in the company's development and that investors are more than happy to inject the money required to cover the £142 million of admin expenses that actually exceeded turnover in the year, but that's still one heck of a profit and loss account, especially when the company admits thats one of its biggest risks is:
I'd put having to actually employ the staff doing the delivery in that category. Right now not one of the company's staff appears to actually get on a bike to make a living: 80% of them are in sales and marketing. If the employment model changes that tiny gross margin looks like it could become a gross loss.
One to watch, but a sure sign that it's not just employees at risk in the gig economy.
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Would any of the Admin Expenses be management charges from associated companies ?
None disclosed
Ironically the FT (FT Alphaville column) made the very same points. https://ftalphaville.ft.com/2017/09/21/2194009/people-go-for-subsidised-services-who-knew/
Might Izabella read me?
She might…
A great spot Richard.
If Izabella is reading your output and just regurgitating your point that’s pretty lazy blogging on her part.
An email to her editor is called for, drawing attention to this! I shall oblige on your behalf.
Meantime, I guess if Deliveroo were forced to employ the delivery riders they’d go out of business. That would surely be a good thing as then all the riders would be able to get proper jobs with proper pay and a decent wage. And possibly their bikes bought for them.
Keep going.
Stop being stupid
I know Izabella
And as a matter of fact I did work in a media story on this issue, willingly, without credit being given
I am not saying whose
I searched on them in my area and noticed they will collect alcohol from the off licence and deliver it to me – top brands like Gallo, Echo Falls, and Hardy’s Stamp.
The worry seems to be that if the status of the riders is changed then the company goes under and workers, investors and customers will lose out. If those three groups lose, then who will gain?
The people who get the exercise of walking to the offy
The investors will get what they deserve for putting money into a scam. The workers are exploited, no rights, no sick pay, no pension etc etc. Is this the kind of economy we want? And the company, like many others, doesn’t pay their dues for all the advantages provided by the rest of us.
It’s deja vu all over again – high burn rate = valuable business (lol). These business models are a scam, as the FT article hinted and rely on cheap, exploited labour that are supposedly self-employed. Time for HMRC to get tough.
You are such a grouch, Richard.
Of course it’ll work …. as soon as we have organic 3d printers. (Lithium ion battery powered for picnics)
🙂
I bet it does more that monitor changes to legislation – I bet it lobbies to ensure that proposed changes are challenged and cut off before they become viable.