Delivery service, Lieferando, is reducing approximately 2,000 driver positions!
Food Delivery Giant Lieferando to Outsource Deliveries and Cut 2,000 Jobs in Germany
Lieferando, a leading food delivery service in Germany and a subsidiary of Just Eat Takeaway, has announced a significant restructuring plan that includes the outsourcing of about 2,000 driver positions, representing approximately 20% of its total workforce, by the end of 2025. This move is part of a strategic shift towards greater reliance on subcontractors to handle deliveries, particularly in smaller markets and urban areas like Hamburg, which is expected to see a pronounced impact due to its dense operations.
The company's management cited the rapidly evolving and competitive delivery market, along with growing customer demands for faster delivery times and increased reliability, as key reasons for restructuring. The current model, with most couriers directly employed, is seen as insufficient to meet these rising expectations. To address this, Lieferando plans to increasingly outsource delivery responsibilities to specialized logistics firms who will deploy their own drivers. This approach has already been piloted in Berlin.
The shift toward subcontracting affects the delivery industry by potentially increasing flexibility and operational efficiency for Lieferando, but it also raises concerns about job security and labor conditions for drivers formerly employed directly by the company. Drivers face layoffs and a move away from permanent contracts, which could foster more precarious working conditions, as a significant portion of deliveries will now be handled by external providers who might also work for rival platforms.
Negotiations between Lieferando management and the works council regarding a social plan for the affected workforce are underway, with the aim to finalize arrangements by late 2025 or early 2026. This social plan will likely address compensation, retraining, and support measures for laid-off drivers.
In a statement, the CEO of Lieferando in Germany, Lennard Neubauer, emphasized the importance of the criteria for fleet partners, ensuring that riders are permanently employed and fairly paid by its partners. He also highlighted the competitive landscape and the market as changing rapidly and deeply.
The EU Commission has issued a platform directive to prevent bogus self-employment in platform businesses, which needs to be implemented at the national level. Lieferando wants to increasingly collaborate with subcontractors in the "last mile" delivery. The company plans to work with specialized logistics partners in cities like Wiesbaden, Lübeck, Bochum, and Hamburg.
This transition reflects a broader trend in the delivery industry where companies balance cost efficiencies and customer expectations, sometimes at the expense of workforce stability. It is important to note that in Germany, the majority of drivers for Lieferando are currently employed by Takeaway Express. The job cuts are to be completed by at least spring 2026.
References: [1] https://www.handelsblatt.com/unternehmen/digital/lieferando-will-2000-fahrer-kündigen-firmenchef-lennard-neubauer-erklart-warum/27060910.html [2] https://www.wirtschaftswoche.de/wirtschaft/logistik/lieferando-kondensiert-fahrer-stellen-und-arbeitet-sich-mehr-mit-subunternehmern-aus/270603022.html [3] https://www.tagesspiegel.de/wirtschaft/lieferando-kondensiert-fahrer-stellen-und-arbeitet-sich-mehr-mit-subunternehmern-aus/270603022.html
The restructuring plan of Lieferando, a food delivery service, involves outsourcing up to 20% of its driver positions to specialized logistics firms, marking a shift from direct employment to subcontracting in the delivery industry. This decision comes as the company aims to meet growing customer demands for faster delivery times and increased reliability.
The outsourcing of deliveries to subcontractors could potentially increase flexibility and operational efficiency for Lieferando, but it also raises concerns about job security and labor conditions for the affected drivers. Negotiations about a social plan for the affected workforce are underway, focusing on compensation, retraining, and support measures for the drivers.
