Just Eat Takeaway will close its in-house delivery service in Paris, Europe's largest meals delivery company said on Thursday, a move which could impact around 100 jobs.
Just Eat has championed employing its own couriers in Europe rather than using 'self-employed' couriers as is common in the gig economy and favoured by competitors such as Uber and Deliveroo, which are both bigger in France.
Just Eat said it was at a competitive disadvantage in France as a result, and abandoned its in-house delivery operations in most of France in 2022 in favour of a third-party courier service, Stuart, which uses self-employed couriers.
Platform Work Directive
In Paris the company will now move to a similar model, a Just Eat Takeaway France spokesperson said in a statement.
CEO Jitse Groen, speaking to reporters on Wednesday, criticised the European Union's failure to approve the Platform Work Directive, a law which would create a "presumption of employment" for gig workers.
"I think it's a shame that European governments, especially the ones that have very stringent strong (labour) beliefs, such as France, are opposing this legislation," he said.
Earlier this week, Just Eat Takeaway said it expected to report 2023 core earnings ahead of its forecast, after it broke even on free cash flow in the second half of 2023.
Europe's biggest meal delivery group sees 2023 adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of around €320 million, compared to the forecast of about €310 million it gave in mid-October.
Higher Food Prices
Gross transaction value (GTV), a common metric for food delivery companies, grew 4% in Northern Europe and 5% in the United Kingdom and Ireland in the fourth quarter, Just Eat's best ever quarter in these markets.
Growth was driven by higher food prices, new partnerships with restaurants and shops, as well as expanded tie-ups with Morrison's Daily, Lego and KFC.
However, its orders fell 5% in Northern Europe and 6% in Britain and Ireland in 2023. Groen said Just Eat was close to returning to order growth in both markets.
Article by Reuters, additional reporting by Hospitality Ireland.