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Contxto – In a bid for autonomy and labor rights, delivery drivers from Rappi and Glovo in Córdoba, Argentina have formed a coalition. Together, they plan to conceive a new application called Tuenco with improved benefits for workers. It looks like the industry may have some unexpected competition.

How did this begin?

Delivery services like Rappi and Glovo are all about convenience – but at what cost to the delivery drivers themselves? These startups allegedly don’t provide comprehensive compensations to freelance contractors providing their services.

Last year in Córdoba, drivers formed a union called APP as a means to mobilize. Since then, they have created a new strategy in the food delivery world that may result in some compromise among influential industry players. Not only do these include Rappi and Glovo but also PedidosYa, Uber Eats and Rapiboy.

“The idea of ​​forming a cooperative arose because of the situation that delivers working for multinational companies find themselves in,” said Diego Sánchez, general secretary of the guild, to La Voz newspaper. “Most don’t have any type of coverage or insurance or holidays, and who have nobody to report problems to,” he explained to La Voz newspaper.

What will Tuenco entail?

All in all, group members desire a formal job. To do this, they formed the Syndicate of Motorcyclists, Messengers and Cadets to pursue reform in the industry. Later this month, the union plans to present their business model to the Motor Cooperative that will include:

1. Social security benefits

Plain and simple, drivers want to be part of the formal economy. What this entails are enhanced invoicing systems, retirement funds, childcare services, etc.

2. Holidays

Like most jobs, the individuals desire paid time off on special occasions, whether that be Christmas, Easter, etc.

3. Better insurance

One of the biggest concerns among drivers is the lack of company insurance coverage in case of major accidents. Sometimes individual plans don’t cover certain incidents, which can definitely be a burden.

4. Regulatory framework

Based on the competition, Tuenco representative would like more government oversight over delivery applications, not to mention corporate accountability.

“Until the national government gives a regulatory framework for these applications, we will work as a cooperative so that the adherent partners have a higher salary, coverage of work social, life insurance, holidays, bonuses, among other benefits,” said Sánchez.

5. Annual complimentary salary

A little bonus never hurt anybody. Group members expect to implement an extra salary that people earn at the end of the year.

6. Headquarters

An established meeting spot will be made for operators to convene before making deliveries. This could improve coordination among drivers.

What needs to happen next?

Before the cooperative can officially start operating, it must secure 150 participants. To get involved, one must also be between 18 and 45 years old, own a vehicle in good condition, plus have all the legal paperwork. Representatives at Tuenco expect to start negotiations on March 18.

Conclusion

No matter what way you look at it, delivery apps is a game of margins. Whoever charges the least amount with additional fees will most likely garner the most business. With all of those added benefits, though, competing over margins sounds a little bit more complicated. However, if Tuenco plays its cards right, it may be changing the game forever.

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1 Comment

  1. Rappi is a multinational Colombian company based in Bogotá. Jacob you should clarify that in this context you’re talking about Rappi Argentina. Otherwise, great article. Thanks.

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