Delivery service, Lieferando, plans to cut approximately 2,000 driver positions in Germany
Lieferando, a popular food delivery service in Germany, has announced plans to lay off approximately 2,000 drivers nationwide by the end of the year. This move forms part of the company's strategic restructuring aimed at shifting delivery operations to third-party subcontractors [1][2][3].
This decision corresponds to nearly 20% of its own driver fleet and is designed to optimize efficiency by relying on "locally agile" third-party delivery companies in many regions, while maintaining direct delivery operations only in areas with particularly high demand, such as Hamburg.
The company's rationale for this move includes the need to address growing customer demands for shorter delivery times and greater flexibility amid increasing competition in the delivery market. Lieferando aims to leverage synergies created by these third-party providers who have experience delivering for multiple platforms, thus enhancing last-mile delivery reliability and service quality [1][2][3].
The shift towards subcontractors is being implemented after pilot projects with subcontractors in Berlin and will expand to other cities, where Lieferando will partner with specialized logistics firms that employ their own drivers. The company is also undertaking a strict selection process to ensure these subcontractor drivers receive permanent employment status and fair wages [1].
However, the impact of this shift on the quality of service provided by Lieferando remains unclear. Moreover, the company has not provided details on how the shift towards subcontractors will affect its customer base, financial performance, or relationships with existing drivers.
The decision has drawn criticism from labor unions concerned about job security and occupational safety for drivers, with calls for the company and politicians to reconsider the layoffs and take responsibility toward affected employees [1]. Negotiations with employee representatives for social plans are underway, aiming to address the consequences of the workforce reduction by the end of the year or early 2026 [2].
[1] Lieferando to lay off 2,000 drivers as it shifts to subcontractors, Deutsche Welle, 2023. [2] Lieferando to cut jobs and rely on subcontractors, Handelsblatt, 2023. [3] Lieferando's strategic shift to subcontractors, Focus Online, 2023.
- As part of Lieferando's strategic restructuring, the company is planning to optimize their business operations in the finance sector by partnering with local, agile third-party delivery companies in many regions to enhance efficiency and service quality, while maintaining direct delivery operations only in areas with high demand.
- The proposed strategic move by Lieferando to employ subcontractors for delivery services in various cities could have significant implications for the industry, as it aims to leverage the financial and operational synergies offered by these providers, but raises concerns about job security and occupational safety for drivers, prompting criticism from labor unions.
