Delivery Workers: Backbone of the COVID-19 Economy

Since March 24, when Mexico officially entered Phase 2 of its national COVID-19 spread, offices have been emptied and factories shut down as measures to contain the virus have been put in place. On March 30, the Mexican government announced that all non-essential businesses would close and that staying at home was encouraged. Since then, e-commerce in the country has exploded as those lucky enough to work from home have ordered meals and consumers have moved into the digital space in the face of brick-and-mortar store closures.

Delivery workers have been a vital lifeline for local restaurants that have used the services of delivery workers through apps like Uber Eats, Rappi, Sin Delantal and DiDi Food to continue trading despite the shutdown. Local market producers have also been helped by delivery workers, with vendors at Mexico’s famous Central de Abastos market using home delivery services to get produce to clients and still get paid.

In an interview with the Mexican Association of Online Sales (AMVO), DiDi Food Mexico Director of Operations María Pia said that her company is seeing demand for home delivery “growing at double digits week after week.” Meanwhile, David Geisen, CEO of Latin America’s largest e-commerce retailer Mercardo Libre, has reported that the company is seeing much faster growth now than at the start of the year. In the US, Amazon has announced its intention to hire thousands of extra workers to cope with the increased demand.

Without delivery workers, transport and delivery of products would have all but ground to a halt in most parts of Mexico. In effect, delivery workers are keeping many businesses in Mexico’s formal economy alive.

While delivery workers have received an increased wage inline with the increased demand, they are also taking far higher risks. Some workers are self-protecting with the use of antibacterial gel and gloves and some companies have offered a form of sick leave should a worker be diagnosed with COVID-19. Uber Eats said its 14-day financial support package for COVID-19 infected workers would be worked out based on their average earnings over the previous six months or less.

On April 6, Mexico’s Deputy Minister of Health Hugo López-Gatell said that Mexico would likely enter Phase 3 of the pandemic in “two to three weeks.” This phase indicates that the transmission of the virus is now widespread throughout the nation and a high number of cases are certain. When this happens, restrictions are likely to be put in place including reduced permissions to leave home.

When that happens many restaurants will be forced to stop trading altogether, including suspending their home delivery services. Likewise, Amazon delivery workers may be forced to stay indoors. What happens to the backbone of the COVID-19 economy then?