Deliveroo shares fall to record low in response to EU plan on gig economy

European Commission plan to act on gig workers is putting pressure on the takeaway delivery and ride-hailing sectors

Deliveroo and its rivals such as Just Eat are under pressure after the European Commission revealed last week it plans to push countries to reclassify as many as 4.1m gig workers as employees. File picture

Deliveroo shares plunged 6.5% to hit a record low during Monday’s session in London, and takeaway food delivery rivals Just Eat and Delivery Hero also fell about 5% in Amsterdam and Frankfurt, on fears of the European Commission’s proposal concerning employment rights and the status of gig economy workers hitting profitability of these companies.

“It is essentially a move to try and do away with the gig economy and ensure all employees everywhere are captured by employment legislation,” said Stuart Cole, head macro economist at Equiti Capital.