What is truly happening to the food delivery business model in Italy and across Europe? Recent events suggest a profound transformation is underway. On March 5th, Carrefour made the critical decision to suspend grocery deliveries via Glovo and Deliveroo, following judicial investigations in Milan regarding the alleged exploitation of delivery riders.

At first glance, this might seem like a prudential, temporary operational choice tied to a specific legal issue within last-mile logistics. In reality, this signal is much broader and affects the entire food service supply chain. The investigation is not just targeting the platforms themselves; it is also scrutinizing the brands that utilize them.

When the Supply Chain Becomes a Brand Risk

Among the names cited in the investigations are major players in organized retail and multinational QSR chains—such as McDonald’s, Burger King, Carrefour, and CRAI—who have heavily integrated these platforms into their sales strategies. They are not accused of direct exploitation, but they are part of the economic chain utilizing this logistics network.

This highlights a crucial point: when a supply chain relies on a labor model operating at the limits of economic sustainability or legality, the risk does not remain confined to the last link in the chain. Carrefour’s decision was not merely operational; it was an act of legal and reputational risk management.

This dynamic is not new. In recent years, the “Made in Italy” fashion sector faced similar crises when luxury brands (like the TOD’S group) were scrutinized because their sub-contractors utilized irregular labor. The core issue remains identical: a brand does not produce directly, but if its supply chain generates value through problematic labor conditions, the reputational and legal risks inevitably fall upon the brand itself.

Marketplace or Labor Organization?

For years, food delivery has been heralded as a technological revolution driven by apps, geolocation, and algorithms. However, behind this narrative lies a concrete structure based on urban logistics, ultra-flexible labor, and digital coordination.

When an algorithm dictates who works, when they work, and what priority their orders receive, the platform ceases to be a mere technological intermediary and effectively becomes a labor organization tool. This is exactly where Italian and European regulators are intervening.

The “Just Eat” Anomaly and the Market Paradox

In this scenario, Just Eat Takeaway.com represents an interesting exception. In 2021, the company began hiring riders directly as subordinate employees in Italy, anticipating the current European regulatory push.

However, the market reacted poorly. While competitors like Glovo and Deliveroo rapidly expanded, Just Eat lost market share. The structural reason is clear: when riders are actual employees, labor costs increase, operational flexibility decreases, and the logistics structure becomes far more complex.

Just Eat demonstrated that a regulated model is possible, but it also exposed the great paradox of contemporary food delivery: the most socially sustainable model is not necessarily the most economically competitive one.

The Global Pattern and the Strategic Question

This is not an isolated Italian case. Across Europe, the gig economy is entering a phase of strict regulation (e.g., the EU Platform Work Directive and Spain’s “Rider Law”). Even in the United States, platforms like Uber and DoorDash face continuous legal battles over worker classification.

As the food delivery sector continues to grow, industry leaders must ask themselves: is this growth structural, or was it built on a fragile economic equilibrium? For years, the model relied on three pillars: highly flexible labor, massive Venture Capital funding, and completely outsourced last-mile logistics. If the real cost of labor changes, the entire business model must be re-engineered.

Industrial Vision or Strategic Risk?

Today, many QSR and retail brands are investing heavily in dark kitchens, delivery-optimized menus, and platform integrations. The inevitable strategic question is: do the assets we are dedicating to food delivery truly have a long-term vision, or are we building on a fragile foundation?

Food delivery will not disappear, as consumer demand continues to grow. However, the underlying economic model could change profoundly. Carrefour’s decision is a clear signal that the industry is beginning to question the true cost of totally outsourced last-mile logistics.

We must not view this as a binary political debate. Today, food delivery is not just a customer service; it is a crucial marketing action for brands. It is up to lawmakers to define the parameters within which market stakeholders can safely operate, grow, and invest.

During the 1980s, I worked as a “Pony Express” rider myself. Riding through rain and snow helped me pay for my studies. Calling this activity “slavery” means ignoring the reality of those who choose to do it independently. However, there are objective limits beyond which the boundary between flexible work and abuse is completely erased.

— Michele Ardoni

Published on: https://www.linkedin.com/pulse/carrefour-sospende-il-delivery-con-glovo-e-deliveroo-food-ardoni-3tvrf/