Italian magistrates placed Uber Italia under special administration Friday over food deliverer exploitation allegations, according to Reuters.
Italian authorities have placed the company under special administration to investigate reports of underpaid food delivery workers. Anonymous sources allege that Uber paid over 1,000 deliverers only three euros per hour. The sources also allege that Uber paid recruitment companies higher sums to hire and manage foreign workers for Uber.
The concerns in Italy follow after Uber Eats has expanded its driver sign-ups during the COVID-19 pandemic. According to Uber, sign-ups have increased tenfold since the pandemic:
While it’s too early to say what impact the coronavirus crisis will have on food delivery overall, we’re seeing signals that people are relying on delivery services more. The impact has varied widely city-by-city and country-by-country, but cities like Seattle and San Francisco have seen an uptick in food delivery requests on Uber Eats recently. In the US and Canada, we’ve also seen a significant increase in the number of restaurants looking to offer delivery as dine-in has been restricted—including a 10x increase in self-sign-ups.
Uber has denied these insufficient payment allegations and denies any intermediation from outside companies. Uber additionally claims that it has followed all applicable Italian regulations and laws.
Uber will continue its operations in Italy during the investigation.
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