Deliveroo's chief executive has apologised for allowing a dispute with its riders to escalate after the government intervened at the weekend.
The company has been at loggerheads with its London couriers over changes to payment terms that riders say would significantly decrease their potential earnings. Riders have staged numerous demonstrations over the weekend to highlight the changes.
The dispute arose because Deliveroo planned to pay its drivers for each delivery instead of at a fixed hourly rate.
On Sunday the Department for Business, Energy and Industrial Strategy intervened to state that workers must be paid the "national living wage" of £7.20 an hour unless a court or HMRC rules that they are self-employed.
Under the old plan, riders could earn £7 per hour plus £1 per delivery, meaning that most riders made between £9.20 and £9.30 per hour. The proposed new system would see workers earn £3.75 per delivery.
William Shu, Deliveroo's co-founder and chief executive, has now said that drivers can choose to stick with the old system, or to swap onto the new plan. He said:
"I'm very sorry things have gone to this point. Our riders are the lifeblood of our business and without them we are nothing.
"If riders choose to be on a new scheme, that's great… If riders feel like it's not for them, they can choose to work on the old scheme as well."
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