Delivery service, Lieferando, plans to eliminate approximately 2,000 driver positions
In a move that could reshape the delivery landscape in Germany, Lieferando, one of the country's leading food delivery services, has announced plans to lay off approximately 2,000 drivers and collaborate more with subcontractors for last-mile deliveries.
This decision, affecting about 20% of Lieferando's total fleet, is expected to have a substantial impact on cities like Hamburg, where smaller markets such as Wiesbaden, Lübeck, Bochum, and Hamburg are particularly affected. The job losses could have a significant impact on the livelihoods of those affected.
Lieferando's CEO, Lennard Neubauer, justifies the move as a response to rapidly changing market conditions and intense competition, stating that customers expect reliable service and short delivery times, which cannot be guaranteed with the current structures. The company aims to maintain direct delivery operations in areas with high demand but will rely on third-party firms in other regions to enhance efficiency.
However, the move has drawn criticism from unions, such as the Food, Beverages and Catering Union (NGG), which worries about occupational safety and urges the company to reconsider its approach. The union sees the current decision as an attack on co-determination and employment structures at Lieferando. Mark Baumeister, head of the hospitality department at the NGG union, has stated that Lieferando is shifting responsibility for employees, which is unacceptable.
The NGG union welcomes Lieferando's past employment of drivers directly but is outraged by the current decision to lay off drivers. The union has recently called for strike action in Hamburg, where Lieferando will collaborate with specialized logistics companies that will handle deliveries using their own drivers.
As part of the restructuring, Lieferando is due to negotiate a social plan to mitigate the effects of the layoffs, aiming to conclude these discussions by the end of the year or early in 2026. The company's works council will be informed about these measures in the afternoon.
The EU has issued a platform directive to combat exploitative practices and widespread false self-employment in the sector, which needs to be implemented at the national level. With a portion of the delivery business outsourced to third-party companies, the union may find it more challenging to ensure uniform employment conditions.
Lieferando's strategy aims to improve operational efficiency and adapt to market demands, but it also raises concerns about job security and labor conditions in the gig economy. The company's decision reflects the competitive landscape of the delivery market, where companies are under pressure to deliver quickly and reliably. By subcontracting, Lieferando aims to stay competitive and meet customer expectations.
However, as the gig economy continues to evolve, it remains to be seen how these changes will impact both workers and consumers in the long run.
- The decision to lay off drivers by Lieferando could potentially disrupt the health and wellness of those affected, highlighting the need for workplace-wellness initiatives in the delivery industry.
- As Lieferando collaborates more with subcontractors for last-mile deliveries, the finance and business sectors will play a significant role in ensuring uniform employment conditions and addressing concerns about exploitative practices.
- In the wake of Lieferando's decision to restructure its delivery operations, the science of economics will be crucial in predicting and understanding the long-term impacts on both workers and consumers in the health and wellness industry.
