Months after expanding into the U.K. and a day following its launch in France, U.S. delivery startup Gopuff is weighing the status of its workforce across the pond.
Gopuff rolled out in the U.K. in November 2021 with the acquisitions of Dija and Fancy, which gave it a new base of drivers, customers and use of 40 European micro-fulfillment centers.
Dija founder and CEO Alberto Menolascina, who is now vice president of Gopuff’s U.K. operation, told Forbes on Thursday (March 3) that the purchase of both Dija and Fancy presented two frameworks for how delivery drivers work that must be integrated in a way that is complementary.
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“We had two companies coming together, Fancy and Dija, they were both acquired by Gopuff and we have two different employment statuses. In London, with Dija we classified our riders as workers and then in the U.K. regions they are ICs [independent contractors],” Menolascina told Forbes.
The way London drivers are classified, they are entitled to a minimum wage and holiday pay.
“We constantly talk to our drivers and we’re going to figure out over time what’s the right formula,” Menolascina said.
Read more: Gopuff Expands Across France with its 24/7 Delivery Service
Gopuff is planning to funnel all drivers into one framework that is a “more consistent model,” but there is no date set for the changes.
The ride-hailing and delivery components of the gig economy have kicked up numerous debates and lawsuits over the status of workers. In the U.S., some state legislatures, federal officials and legal experts have maintained that drivers are employees under the law.
Related: Delivery Platform Gopuff Launches Private Label
Uber, Lyft and DoorDash spent $200 million in California in 2020 on a proposition to ensure workers remained independent contractors. The proposition won but was overturned by a California judge in August 2021 on grounds that it violated the state’s Constitution.
Some of the newer rapid delivery platforms are going around the gig model and hiring drivers as employees or offering permanent contracts.