Deliveroo Under Scrutiny: Milan Prosecutors Allege Algorithmic Exploitation of Riders
Milan, Italy – A month after its competitor Foodinho-Glovo, Deliveroo Italia Srl, a food delivery giant with a turnover of 240 million euros and 20,000 riders across Italy (approximately 3,000 in Milan), has been placed under judicial control by the Milan Public Prosecutor’s Office. Prosecutors deem it “urgent to interrupt a situation of genuine exploitation against a significant number of workers” – its cycle couriers – who reportedly receive “remuneration certainly not proportionate to either the quality or quantity of work” (less than 4 euros per hour), in “contrast with Article 36 of the Constitution” (as well as collective bargaining agreements) because it is unable to “guarantee a free and dignified existence.”
This move highlights a growing concern over the working conditions of gig economy workers, particularly in the food delivery sector. While Deliveroo and Glovo are the largest players in Italy, Just Eat notably shifted its model in 2022, employing a significant portion of its couriers with an average hourly wage of around 8.50 euros, plus bonuses, holidays, maternity leave, and severance pay.
The Algorithm as Employer: A New Form of Subordination?
Despite riders operating under supposedly autonomous VAT numbers and a flat-rate tax regime, the Carabinieri’s Labor Protection Unit and Prosecutor Paolo Storari argue that Deliveroo treats them as employees. The company allegedly “manages their work performance through an IT platform that predefines the operational environment, governs performance through digital operational states, constantly geolocates workers, measures worker availability and performance, and links these indices to remuneration.”
This “algorithmic hetero-organization” of work performance, according to investigators, is compatible with the application of subordinate employment regulations. The cycle courier, in the view of the investigators, does not autonomously determine their work process, especially during the execution phase of delivery, where performance is channeled into a standardized, tracked, and evaluated operational sequence. The platform “governs the allocation of work and affects the continuity of earning opportunities through reputational metrics and/or performance indicators (such as participation, reliability, timeliness, acceptance).”
Below the Poverty Line: Riders’ Testimonies Uncover Harsh Realities
The investigation, building on the study of the platform, includes sample testimonies from about forty riders. These riders, despite claiming to work significantly more hours than a normal weekly schedule, report an annual net income below the poverty line. This threshold is benchmarked against indicators such as citizenship income, redundancy payments, new social insurance for employment, and the Istat poverty index.
Specifically, using Deliveroo’s attributable turnover for 2025 as a basis for calculation, the prosecutor found that “30 out of 40 riders (80%) are below the threshold, with an average deviation from the poverty line of 7,600 euros per year, and peaks of 15,300 euros per year.” Furthermore, when compared to the remuneration levels outlined in the relevant collective bargaining agreement (CCNL Logistics, Goods Transport, and Shipping), the discrepancy between actual earnings and the minimum net income determined by the CCNL affects “35 out of 37 workers, or 94 percent.”
Judicial Control: A Measure to Combat Exploitation
Judicial control, which involves the appointment of a judicial administrator to assist rather than replace company management, is ordered when there is a need to halt a situation of alleged illegality, but interrupting business operations could have negative repercussions on employment levels or the group’s value. The prosecutor’s urgent measure, which will later be validated by the investigating judge, appoints judicial administrator Massimiliano Poppi to “rectify the indicators of the crime of illegal labor brokering” for which Deliveroo as a company and administrator Andrea Giuseppe Zocchi as an individual are under investigation. The goal is to “regularize workers and adopt organizational structures (even if differing from those proposed by the company) suitable to prevent the recurrence of exploitation and remuneration below the poverty line.”
Deliveroo, in a company statement, confirmed it “is examining the documentation received from the Authorities and is cooperating with the investigations.”
Wider Implications: Scrutiny Extends to Deliveroo’s Clients
Carabinieri officers also visited a number of major clients of the food delivery platform today, including McDonald’s, Burger King, Carrefour, Esselunga, Poke House Spa, Crai Secom Spa, and KFC Kentucky Fried Chicken (Original Bucket Srl). The objective is to “evaluate organizational models” and “verify” if they are “suitable” to “prevent” the crime of illegal labor brokering attributed to Deliveroo and Glovo, which these companies use for “product deliveries.” This is because inadequate models could constitute negligent facilitation of the platforms’ illegal labor brokering, a charge previously leveled against well-known fashion brands concerning the exploitation practiced by their subcontractors against Chinese workers.
The investigation by Prosecutor Paolo Storari and the Carabinieri’s Labor Protection Unit underscores a critical moment for the gig economy in Italy, as authorities seek to ensure that technological innovation does not come at the expense of workers’ fundamental rights.
Source: https://milano.corriere.it/notizie/cronaca/26_febbraio_25/milano-controllo-giudiziario-per-deliveroo-il-pm-sfrutta-i-rider-con-l-algoritmo-come-glovo-queste-retribuzioni-non-garantiscono-b545e7ff-ee0a-4066-af5f-a3725d1c0xlk.shtml
