Contxto – Precarious work conditions for last-mile delivery personnel are causing startups to re-evaluate their models pertaining to employee benefits.
Rightfully so, more workers are starting to demand safer work conditions and protection against potential injury or death. Common issues range from laboring incredibly long work hours to the lack of health and financial benefits. Recent issues with Rappi and Glovo further prove that.
After the unfortunate death of a deliveryman this past July, iFood recently created an insurance plan for its workforce. Last week, the Brazilian delivery unicorn announced that every deliverer will soon have insurance in case of accidents, disability or death.
Moreover, iFood will reportedly start offering educational courses for its workers in collaboration with the Sesi-SP employment agency. Specifically, participants will have access to safety, financial and equipment classes through this partnership.
iFood employee insurance
iFood’s insurance will reportedly cover health and dental issues while also providing services in case of accidental disability or mortality. However, coverage will only be available during normal working hours. What this means is that the delivery person must log-in to the app while performing duties on bikes or motorcycles.
Financial coverage for accidents won’t exceed R$15,000 (about US$233). At the same time, iFood promises to cover partial or total disability, on top of death expenses. For these incidents, it will cover up to R$100,000 (approximately US$24,200) for each case.
For now, the program is only accessible for those working in São Paulo. Nonetheless, for the ones not based in that city, there’s no need to worry. Based on reports, iFood’s 72,000 employees will reportedly receive benefits by the end of November.
More benefits to come
Besides protecting employees from work-related accidents, the Brazilian startup has also recently launched an “iFood Delivery Advantages” program. Behind this initiative is the purpose to reward workers with points for each successful delivery they make, depending on their model of transportation.
For example, those who make deliveries on motorcycles will earn 2 points for every delivery. All the while, bicycle deliveries earn 4 points while tips have their own special category. That’s to say, R$1 equals 1 point.
Later, employees can exchange these points for discounts on services such as motorcycle and health insurance. To incentivize drivers to work shorter days, though, users can only earn 14 accumulative points per day.
Similarly, to promote educational opportunities among deliverers, online courses are also part of iFood’s new strategy. By linking up with the social agency Sesi São Paulo, the company is now encouraging employees to brush up on safety standards, personal finances, as well as proper equipment usage.