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It's Time to Strengthen the Delivery Industry

By Albert Go - Lalamove
Regional Director Latam


By Albert Go | Regional Manager - Fri, 04/01/2022 - 11:00

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2020 was the year that COVID-19 laid bare the need to drive economic models remotely. With the support of technologies focused on strengthening e-commerce and home delivery, the explosion of apps and virtual platforms was unprecedented. That year also saw more people enter the work ecosystem as delivery partners on digital platforms, registering 42.5 percent, according to official figures.

As the shipping industry evolves, internal self-employment processes must also transform. The economic impact of the pandemic, added to the increase in the number of people looking for extra income or who, unfortunately, became unemployed, have meant that the work of making home deliveries through an app has gone from a complementary activity to being the main source of income for more than 80 percent of the people who provide this service only in CDMX.

The foregoing has led me to think about a fundamental aspect that has sparked a series of debates and conversations on a global scale, which is the care and safety of delivery people. The study, "Social and Employment Perspectives in the World: The role of apps in the transformation of the world of work," carried out by the International Labor Organization, details that, globally, 21 percent of those who are employed as delivery people have had an injury or accident related to work, while in Mexico, 47 percent have suffered accidents, which is the highest number provided by the report more than double the global figure!

In addition, the study indicated that, globally, about 75 percent of delivery people reported suffering some level of stress associated with work, caused by traffic congestion, low pay, lack of orders or customers, excessive length of the workday, the risk of workplace injuries and the pressure to drive fast.

Due to this problem, which has crossed borders around the world, we, as companies, have to face not only these figures but also our drivers, who represent the main engine of our business. At this point, it is no longer about the delivery person’s work scheme (salaried or self-employed), but how to provide and strengthen it.

At Lalamove, we have understood the importance of creating strong alliances that favor our delivery people and caring for their integrity when making their journeys. We also provide timely and accurate information to let them know what they are entitled to when working with us.

Today, our fleet of delivery partners is insured. In recent years, we have also invested in strategic agreements to offer discounts on accessories and parts for motorcycles and thus avoid accidents. We can even provide vehicle rentals at a special price.

Another incentive that is useful and very attractive is the support provided related to the delivery person’s taxes to avoid situations that can be uncomfortable and detrimental to the economy of a worker. Similarly, microcredit is available so that drivers have access to products and services. These are incentives that imbue our business with a greater degree of seriousness and confidence among those who seek to generate income through it.

Home delivery continues to be the preferred delivery method for digital consumers. Thanks to food delivery services, it has been possible for technology companies to maintain the position they were able to build during the pandemic, and it is our duty to create better conditions in the labor market through incentives, recognition and timely information for the people who work with us.

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