Order In with Ethics: Choosing Fair Food Delivery Apps

The food delivery industry in Australia has multiplied in recent years with the rise of food delivery apps. These apps provide convenience for consumers and have significantly impacted the food industry. According to the Australian Bureau of Statistics, online shopping and e-commerce trends have increased considerably, with Australians spending more than $52 billion online in 2022. Food delivery apps have played a significant role in this trend, increasing usage by 70% during the COVID-19 pandemic.

While these apps benefit consumers, the labour issues associated with food delivery apps in Australia must be addressed. Many food delivery workers are classified as independent contractors, which means they do not have access to the same protections and benefits as employees. These issues include low wages, lack of benefits, and unstable work conditions.

According to a report by the Australian Council of Trade Unions (ACTU), the gig economy has been a growing concern in Australia, with one in three workers now in insecure work. This highlights the impact of the issues on workers' well-being, including increased stress and financial insecurity. The Fair Work Ombudsman's page on the gig economy also notes that the lack of employment protections for gig workers can lead to exploitation and underpayment.

A study by the Victorian government on the impacts of the gig economy on workers found that many gig workers need to be made aware of their rights and entitlements. The study also found that many workers in the gig economy are unable to make a living wage and often have to work long hours to make ends meet. As gig workers are classified as independent contractors or sole traders, they’re not guaranteed minimum wages, mandatory breaks, and limitations on work hours. Consequently, they find themselves in a relatively unregulated employment category.

Consumers must be made aware of the issues associated with the gig economy and food delivery apps in Australia. These issues significantly impact the workers' well-being, affecting the quality of service provided to customers. So it's not just a matter of ethics; it's also about ensuring that the food delivery industry is sustainable in the long run.

Moreover, it's important to note that the impact of the gig economy and food delivery apps on workers is not just limited to the delivery sector. For example, a report by the University of

Sydney found that food delivery apps also significantly impact the restaurant industry in Australia. The report highlights that these apps are causing disruption in the restaurant industry and are contributing to a decline in the number of dine-in customers.

Therefore, consumers need to be informed about the broader impact of their choices when using food delivery apps. By choosing to support apps that treat workers fairly, they are supporting gig workers and contributing to a more sustainable and diverse food industry in Australia.

Consumers need to choose food delivery apps that treat their workers fairly, which is where the criteria for selecting the appropriate and least biased food delivery apps come into play. This includes wage structure, benefits, and working conditions provided by these apps that affect the well-being of the workers. So let’s dive in, shall we?

Wage structure is often a primary concern for workers in the gig economy. For example, many food delivery apps pay workers per delivery or hour, with rates fluctuating depending on the time of day and demand. This can result in unstable incomes for workers and make it difficult for them to plan their finances. According to a survey conducted by The Transport Workers Union (TWU), workers who deliver food by scooter earn an average hourly wage of only $10.42, which is less than half of the national minimum wage for casual workers set at $24.80 per hour.

This highlights the need for food delivery apps to provide fair and transparent wage structures that allow workers to earn a living wage.

Benefits such as sick leave, superannuation, and workers' compensation are also crucial for the well-being of food delivery workers. These benefits provide a safety net for workers in case of illness, injury, or other unforeseen circumstances. However, many food delivery apps do not offer these benefits to their workers, which can leave them vulnerable and financially insecure.

A research paper published by the Actuaries Institute states that less than 1.5% of gig economy workers make personal contributions to their superannuation. Even for those who do contribute, the amount is negligible compared to the employer-paid contributions received by minimum-wage workers.

The report suggests that gig economy workers who spend five to ten years of their productive labour years in this industry may experience a shortfall of between $48,000 to $92,000 in their superannuation savings at retirement.

In addition to providing fair wages and benefits, food delivery apps should also offer their workers safe and comfortable working conditions. This includes adequate breaks, access to facilities such as toilets and rest areas, and protection from harassment and discrimination.

Organisations in Australia, such as the Transport Workers Union (TWU) and Unions NSW, have advocated for better working conditions and fair wages for food delivery workers. For example, the TWU has called for a minimum wage for gig workers, as well as the provision of benefits such as sick leave and superannuation. Similarly, Unions NSW has launched a campaign to improve the wages and conditions of gig workers, including those working in the food delivery industry.

Examples of food delivery apps that meet these criteria include FoodByUs, which pays their delivery workers above award rates and provides sick leave and superannuation contributions.
By choosing food delivery apps that treat their workers fairly, consumers can play a significant role in supporting fair labour practices in the food delivery industry. They can also support organisations such as the TWU and Unions NSW in their efforts to improve the working conditions and wages of food delivery workers.
The criteria for fair food delivery apps should include fair and transparent wage structures, benefits such as sick leave and superannuation, and safe and comfortable working conditions. By supporting food delivery apps that meet these criteria, consumers can contribute to fair labour practices in the food delivery industry and help improve the lives of food delivery workers in Australia.

Food delivery apps have had a significant impact on the restaurant industry in Australia and have led to increased competition and reduced profit margins for restaurants. However, food delivery apps have provided an opportunity for some restaurants to expand their customer base.

While we’re not in the business of naming and shaming, we do recommend that you examine the labour practices of the popular food delivery apps in Australia as many of them have been in the news for various reasons, including unsafe work practices.

Consumers can support fair labour practices by choosing food delivery apps that treat their workers fairly. It is also important to tip delivery workers and leave positive reviews for their services.

Advocating for better labour laws in Australia can also have a significant impact on the food delivery industry. For example, The Australian Council of Trade Unions (ACTU) reports a growing movement among unions and civil society organisations to advocate for better labour protections for gig workers in Australia. The report notes that these groups are calling for reforms such as minimum wage guarantees, better health and safety protections, and more substantial collective bargaining rights for workers.

Transport Workers Union (TWU) works to improve conditions for food delivery workers in Australia by calling for reforms such as minimum pay rates, insurance coverage for accidents and injuries, and better safety training for workers. The TWU has also called on food delivery platforms to be more transparent about their algorithms and data practices, arguing that workers should have greater control over how they are assigned jobs and how they are paid.

In 2021, the Australian government announced a series of reforms aimed at improving working conditions for gig economy workers. The reforms include the introduction of a new "gig economy award" that would set minimum pay rates for workers in the sector, as well as changes to tax and regulatory rules to make it easier for gig workers to access benefits such as sick leave and superannuation.

The Fair Work Ombudsman, which is responsible for enforcing labour laws in Australia, has also taken action to crack down on labour abuses in the food delivery industry. In 2020, the Ombudsman launched an investigation into the pay practices of several food delivery platforms, including Uber Eats and Deliveroo (which ceased operation in Australia in November 2022). The investigation found that many workers were being paid below the minimum wage and were not receiving benefits such as sick leave and superannuation. As a result, the Ombudsman has taken legal action against several companies to recover unpaid wages and improve working conditions for workers. Several Australian restaurants and cafes have also taken steps to support fair labour practices in the food delivery industry. For example, in 2022, Melbourne-based hospitality group Lucas Restaurants announced that it would stop using third-party delivery platforms and instead offer its own delivery service, which would be staffed by its own workers who would receive fair pay and benefits.

Food delivery apps have revolutionised the food industry and transformed the way we consume food. However, this innovation comes at a cost, with many delivery drivers and riders working long hours for low wages and no job security. As consumers, it is important that we make informed choices when using food delivery apps and choose those that treat their workers fairly.

By supporting organisations like the TWU and restaurants and cafes that prioritise fair labour practices, consumers can play a role in driving positive change in the food delivery industry. At the same time, it is important for consumers to remain informed about the labour practices of different food delivery apps and to choose those that prioritise gig workers’ well-being. With these actions, we can help create a more just and equitable gig economy in Australia.

By using the criteria outlined in this blog post and supporting fair labour practices, we can make a positive difference in the lives of food delivery workers and ensure they are valued and treated with respect. We can also show our support by tipping, leaving positive reviews, and advocating for better labour laws in Australia.

The gig economy and food delivery apps are here to stay, and it is up to us to ensure that they operate fairly and ethically. With the right support and advocacy, we can create a sustainable and equitable food delivery industry that benefits everyone involved.