Lieferando to Cut Approximately 2,000 Delivery Jobs in Germany

Lieferando, a prominent food delivery service, has announced plans to reduce its workforce in Germany by around 2,000 positions, which accounts for nearly 20% of its total delivery fleet. This strategic move comes as the company aims to adapt to the increasingly competitive market by enhancing partnerships with subcontractors for last-mile delivery services.

The decision to downsize is primarily influenced by evolving customer expectations for reliable service and shorter delivery times, which the current operational structure struggles to meet in some regions. Consequently, the company will increasingly collaborate with specialized logistics firms to manage deliveries, particularly in smaller cities such as Wiesbaden, Lübeck, and Bochum, in addition to Hamburg where the impact will be particularly significant.

In a recent statement, the company highlighted its intent to communicate these changes to the employee representation body, with discussions regarding a social plan anticipated to commence promptly. The goal is to finalize these processes by the end of this year or by the first quarter of 2026 at the latest.

Lieferando operates under the umbrella of Just Eat Takeaway, a Dutch food delivery conglomerate, with its German operations managed by Lieferando Marktplatz Gesellschaft. Historically, the drivers have been predominantly employed directly by a subsidiary, Takeaway Express. Moving forward, however, while most delivery personnel will continue to be employed directly, approximately 5% of the delivery volume will be outsourced to specialized third-party providers. This outsourcing strategy has already been tested in Berlin and will continue to be implemented in select districts.

Amidst industry-wide concerns regarding worker classification and the prevalence of bogus self-employment, Lieferando acknowledges that subcontracting is a common practice within the food delivery sector. Competitors such as Uber Eats and Wolt also follow similar models, although Wolt ensures that its partners employ their drivers directly. This contrasts with some industry players, raising alarms among labor representatives about potentially exploitative conditions and the widespread issue of pseudo self-employment.

The European Commission has recognized this problem and has proposed a directive aimed at addressing bogus self-employment across the gig economy, which still requires national implementation. In light of these developments, labor representatives have expressed strong discontent over Lieferando's decision to shift towards subcontracting, perceiving it as a relinquishment of responsibility for workers.

The Gewerkschaft Nahrung-Genuss-Gaststätten (NGG), a union representing food service workers, has indicated that this change could significantly hinder its efforts to secure better working conditions and wage standards for delivery personnel. The union has long advocated for a collective agreement and a minimum wage of EUR15 per hour. Recently, they have called for warning strikes in Hamburg, underscoring the urgency of their cause. The outsourcing of delivery work to third-party companies complicates the union's mission to establish uniform employment terms across the sector.