Deliveroo Under Court Control: How Italy's Labor Crackdown Affects Riders and Food Delivery

The Italian branch of Deliveroo is now under court-mandated supervision following allegations that it systematically underpaid 20,000 food-delivery riders nationwide — some earning wages up to 90% below poverty thresholds — in what prosecutors describe as "digital age labor exploitation." The Milan preliminary investigations judge confirmed the judicial oversight, installing an external administrator to audit and reform the company's payment practices.

Why This Matters

• Riders face poverty wages: Prosecutors allege Deliveroo paid between €3 and €5 per delivery, with many riders earning roughly €1,000 monthly — well below Italy's €1,245 poverty-line threshold.

• Constitutional breach claimed: Italy's Article 36 mandates wages sufficient for a "free and dignified existence," which investigators say Deliveroo violated.

• Broader crackdown underway: Milan prosecutors are scrutinizing delivery platforms and other multinationals for similar labor exploitation practices across sectors including logistics and fashion.

• Deliveroo remains operational: The company continues deliveries under judicial supervision while cooperating with authorities.

The Core Allegations: How Riders Were Allegedly Exploited

Milan prosecutor Paolo Storari and the Carabinieri Labor Inspectorate unit leveled serious accusations against Deliveroo Italy S.r.l. and its chief executive, Andrea Giuseppe Zocchi. The investigation centers on alleged intermediazione illecita e sfruttamento del lavoro — Italy's legal term for labor racketeering, commonly known as "caporalato."

The probe found that riders classified as independent contractors were effectively functioning as employees, with algorithmic management dictating their shifts, routes, performance scores, and access to future work. Despite this level of control, riders lacked basic protections: no sick leave, no injury coverage beyond minimal insurance, no vacation days, and no guaranteed income floor.

Prosecutors argue Deliveroo took advantage of riders' economic vulnerability. Many worked 10 to 17 hours daily, seven days a week, yet averaged just €3 to €4 per delivery. When translated into hourly wages, some riders earned approximately €4 per hour — far below the €10 per hour minimum established under Italy's national rider labor agreement (CCNL) signed by relevant labor unions.

In the most egregious cases, prosecutors say compensation fell 81.62% short of collective bargaining standards and 90% below poverty-line income. Around 73% of the workforce reportedly earned under €1,245 gross monthly — the threshold Italy uses to define poverty risk.

What This Means for Residents

For anyone ordering food via app in Milan or across Italy, this case signals a fundamental shift in how delivery platforms must operate. The judicial administrator appointed to oversee Deliveroo has a clear mandate: verify worker status, recalculate wages to comply with national labor standards, and restructure the algorithm that assigns deliveries.

This means potential service disruptions as the company adjusts operations, though Deliveroo is not shutting down. It also means riders may soon see higher pay, which could translate into higher delivery fees for consumers as platforms pass costs along.

For the estimated 3,000 riders operating in the Milan metropolitan area alone, the intervention could represent a lifeline. If the judicial administrator enforces compliance with the CCNL for riders, workers would be entitled to better compensation aligned with national labor standards, plus mandatory surcharges for night shifts, holidays, or adverse weather conditions.

Legal Framework and Related Cases

This is not Italy's first confrontation with gig-economy labor abuses. Recently, Foodinho-Glovo, which operates across Italy, was placed under identical judicial supervision by the same Milan prosecutor. The Glovo case demonstrated prosecutors' determination to challenge platform business models that classify workers as self-employed while exercising algorithmic control over their labor.

Italian courts have established important precedents on platform work status. Rulings have emphasized that riders whose work is organized and controlled by platforms warrant protections under Italian labor law, even when formal contracts claim self-employment status. Courts have also scrutinized algorithmic management systems, questioning their fairness and transparency in employment relationships.

The Broader Investigation

The Deliveroo and Glovo cases are part of a broader enforcement effort by Milan prosecutors targeting labor exploitation across multiple sectors. Prosecutors are examining whether companies' organizational models adequately prevent exploitation throughout their supply chains, extending scrutiny beyond direct employment to include subcontractors, franchise operators, and delivery partners.

This aggressive stance reflects a broader European trend toward strengthening protections for platform workers. Italy is preparing to implement new regulatory frameworks that will enhance worker protections and clarify employment status in the gig economy.

How Deliveroo Is Responding

Deliveroo has issued a brief statement saying it is reviewing documentation from authorities and intends to cooperate fully with the investigation. The company has not publicly disputed the judicial oversight nor announced immediate changes to rider compensation.

The judicial administrator will work alongside Deliveroo's existing management, monitoring compliance and ensuring that labor-law violations are corrected. Unlike criminal seizures, judicial supervision allows the business to continue operating, but under a watchful eye.

What Comes Next

The outcome of this judicial supervision will serve as a bellwether for Italy's gig economy. If the administrator successfully restructures Deliveroo's model to comply with national labor standards, other platforms will likely face pressure to follow suit — either voluntarily or through similar enforcement actions.

Union representatives have long campaigned for rider protections, pushing for mandatory application of labor agreements and advocating for better working conditions. The Deliveroo and Glovo cases have given these efforts new momentum.

For Milan prosecutors, the message is clear: calling someone self-employed does not make it so when an algorithm controls their every move and their paycheck falls below subsistence levels. Whether this enforcement wave will spread beyond Lombardy to other Italian regions remains to be seen, but for now, Milan stands as the frontline of Italy's battle against what officials call "digital caporalato."