Blog Why employing delivery drivers can help…

Why employing delivery drivers can help to solve gig economy pitfalls

Learn more about the pitfalls of the gig economy and how hiring delivery drivers can solve these problems.

food delivery driver on a bike cycling through a city in a yellow jacket

As the restaurant delivery market continues to grow, so too does the issue of managing this expanding delivery driver workforce.

There are tens of thousands of gig economy drivers working in poor conditions for marketplace brands and delivery businesses.

Many do not have a visa to work which is forcing them to rent a profile from others, reducing their potential income.

As a gig worker, you are working as a contractor, not an employee. As a result, there are no additional benefits provided to drivers from brands benefiting from the boom in delivery.

Many do not have commercial insurance because they cannot afford the blanket cover for the year.

While our integration with Zego, offers on-demand commercial insurance (which is a fraction of the cost of an annual policy) we’re also aware of the importance of urging the government to provide more support and control to both restaurants and delivery businesses within the sector.

Potential solutions

When faced with a problem, it is important to explore potential solutions in order to find the best course of action that suits your business needs.

And when it comes to food delivery, it’s no different!

While we may not have all of the answers, the following suggested solutions intend to aid the decision-making process about what course of action is the best to take for restaurants when it comes to the pitfalls of the gig economy.

restaurant worker using software on a tablet

Better financial support

One potential solution that could solve the issues of the gig economy would be for government bodies to incentivize restaurants to hire gig economy workers as directly employed full-time workers.

By exploring the potential of equipping restaurants with hiring grants or reduced insurance coverage would mean they would be more capable of directly hiring delivery drivers.

This would not only solve the visa issue previously mentioned but it would also help to ensure adequate insurance policies were in place as well as improve delivery operations overall due to greater visibility over deliveries.

However, if you are a restaurant operator still unsure about hiring delivery drivers, check out our eBook on how to do self-delivery without hiring any drivers!

a piggy bank with red dominos falling to the left and blue dominos standing to the right

Adopting technology & digital platforms

The adoption of technology within the restaurant sector is 10 fold.

Restaurant operators are realizing the importance of technology in order to meet customer demands and increase customer satisfaction when it comes to both in-house dining and the delivery process.

Government bodies can play an important role in supporting restaurants in adopting technology into their operations to ensure those that can or cannot directly hire delivery drivers are better equipped to handle the surge in order volume we are seeing today as a result of Covid-19.

A point of sale screen in a restaurant with the vromo reporting tool on the screen

Incentives

In recent years, governments and restaurants alike have begun to recognize the importance of technology for the restaurant industry.

Technology can help restaurants reduce costs, increase efficiency and even improve customer satisfaction.

However, many restaurants are hesitant to invest in new technology due to the upfront cost.

To encourage more restaurants to make the switch and reduce the financial burden of adoption, governments can provide better financial incentives.

a bunch of US dollars wrapped with a bow on top

Increased training and support

Government bodies can provide training and support to restaurant owners and staff to help them understand and use new technologies effectively.

This can include workshops and/or working with tech companies to supply online resources.

Restaurants are overwhelmed by the sheer amount of technology available to them.

From incorporating point-of-sale systems with online ordering platforms, implementing order aggregators to consolidate orders AND using delivery management software, it is no surprise that restaurants are not eager on implementing yet another technology solution to their operations.

a delivery driver holding a mobile phone with the vromo driver app displayed on the screen

By taking control of its food delivery service, a restaurant can simultaneously improve its profitability. Restaurants can avoid the typical 15% delivery charge when using marketplace apps by hiring their own drivers and managing the process much more effectively – resulting in happier drivers and customers.

If you’re interested in learning more about self-delivery and how it can be efficiently managed to ensure return on investment for your restaurant, book a demo with our team today!