Just Eat Takeaway.com NV (LON:JET) launched a new worker model in Liverpool that is expected to create more than 1,500 jobs by the end of the year.
It follows similar moves away from the gig economy in London and Birmingham that have created almost 2,000 jobs, the food delivery service said, while it is being used across 150 European cities.
All couriers under this contract are entitled to hourly pay, minimum/living wage, pension contributions and certain statutory benefits including holiday pay and sick pay.
They can access training, are covered by insurance and are provided with e-bikes/e-mopeds for launch, in an effort to cut emissions.
Workers will have the option to operate from a central hub that can be used for breaks.
Before heading out on their shifts, they’ll be provided with branded clothing and equipment to boost brand visibility.
The Independent Workers Union of Great Britain told The Guardian this is “a step in the right direction but still not where it should be to offer a sustainable job that people can build a life around”.
Competitor Deliveroo PLC (LON:ROO) has been criticised for pay and working practices, with riders striking earlier this month.
Last month, Uber Technologies Inc (NYSE:UBER) re-classified 70,000 of its UK drivers as workers following a UK Supreme Court ruling.
Shares in Just Eat shed 5% to 7,559p on Wednesday morning.