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A new home delivery companies model: the cooperatives

A new home delivery companies model: the cooperatives

“Food delivery“ has been presented in the world's major economies for several years now, reflecting today's lifestyle in the world, where immediacy, speed, and convenience are key. 

The habit of home delivery, widespread in specific segments within the restaurant industry such as pizzas, has seen an essential boom in recent years with the entry of other types of establishments and the birth of transport companies dedicated exclusively to the transport and delivery food at home.

The latest push to this phenomenon is currently taking place in the Covid-19 pandemic, with many customers unable to go to their favorite places and with a restoration sector clinging to home delivery as the only lifeline, as long as the situation does not return to normality to allow serving customers in person at their premises.

But delivering food is not without controversy, mainly because of the so-called "riders." A rider is the delivery person who transports the order from the establishment to the customer's home. These riders are "hired" by large home delivery companies or "delivery food”, recruitment that is under scrutiny in many parts of the world due to their precarious employment and economic situation. 

Recently, in Spain, the courts ruled the riders' situation to be illegal, considering them like "false self-employed", since the home delivery companies not only provide the communication platform or App but also determine the daily work, economic conditions, etc. As a result, the courts issued a ruling recognizing these riders as employees, who must be registered in their workforce by these home delivery companies and last mile.

Cooperatives as an alternative

One of the movements created due toof this situation is the creation of cooperatives by home-delivery drivers in several cities. Intending to seek fairer labor relations, this group understands that the cooperative formula may be the one that best suits their day-to-day work and activity.

These groups arise from the need to dignify and make transportation and food delivery at home fairer, while maintaining sustainability in their operations, not only economically but also environmentally. They are fully aware of the sector in which they operate, so they create a business model based on sustainability as a way of working. 

These cooperatives are fairer to the staff working in home food delivery. Still, they also try to make the relationship with their customers (restaurants, fast food establishments, etc.) more appropriate than the one they currently have with the big operators in the market. Many establishments have decided to offer their service directly, "escaping" the very high commissions that these delivery companies demand from each order, in addition to the fees.

Jelp app, the indispensable tool

These new cooperatives are often born with minimal financial resources, so their technological investment becomes vital for survival. The Mexican company Jelp app landed recently in Spain. Still, with extensive experience, it has to be the leading app in Mexico to manage transportation or home food deliveries.

Jelp Deliver can also be used by both the distribution company and the local retailer, allowing both parties to be more viable and able to compete in a growing market, and a more ethical and sustainable model.

Article by Carlos Zubialde

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