Internet5.11.2024

How much online delivery drivers earn in South Africa

Online delivery platforms offer great convenience for South Africans nationwide. However, many drivers only earn between R350 and R450 for a 12-hour day.

MyBroadband recently reported about a former Checkers Sixty60 rider who shared their concerning experiences while working for the platform.

They told us they earned roughly R7,600 per month when being paid a minimum daily fee, an amount received if the minimum daily orders were not met.

Once fuel, bike rent, and maintenance costs were subtracted, they were left with about R2,800.

Another rider told Daily Investor in March that they earned R30 per order, completing an average of 15 deliveries daily. They said that they were compensated for fuel in addition to this R30.

Since the riders are compensated for fuel, R30 per order for 15 deliveries works out to R450 a day and R10,800 for a 24-day month.

It is important to note that delivery drivers working for platforms like Sixty60 and Uber are not considered employees. They are independent contractors.

Not all delivery operations necessarily work this way, but many of them do.

According to attorney Heidi Bartner, contractors’ legal relationship with the company they work for is not governed by the Basic Conditions of Employment Act like that of employees.

She points out that their working relationship is governed by contract law and the terms in their service agreements.

“They are not entitled to the same employment benefits as employees,” said Bartner.

“Employees are entitled to various rights and benefits, including protection against unfair dismissal, minimum wage guarantees, paid leave, protection under labour laws, and access to social security benefits.”

However, Bartner also notes that, “although independent contractors are not considered employees, it is important to note that South African labour laws provide certain protections to prevent exploitation.”

MyBroadband contacted some of the sector’s leading players to find out their employment relationships with their delivery riders.

Shoprite told MyBroadband that their riders are independent contractors registered with SARS as sole proprietors.

“Drivers receive a fee based on their contractual agreement to render a service and are therefore not salaried employees,” it said.

Shoprite refused to comment on this fee out of respect for the riders’ privacy.

On the other hand, Spar’s Spar2U delivery service is not a centralised national platform but operates like its stores, says Spar Group’s national PR manager, Mpudi Maubane.

“Each Spar store is independently owned and operated, unlike other retailers with corporate formats,” said Maubane.

“This means that each store manages its own hiring processes, tailored to meet the specific needs of its team and local community.”

“Spar stores are fully compliant with South Africa’s labour laws, and all payment rates are aligned with industry standards to ensure fair and ethical treatment of employees,” she continued.

MyBroadband also contacted Mr Delivery, but they declined to comment. Uber Eats and Pick n Pay failed to comment by publication.

Democratic Alliance MP and attorney Michael Bagraim previously criticised the practice of claiming that drivers for on-demand food and grocery delivery services were independent contractors.

“They get no benefits whatsoever and they have no protection of our labour law,” said Bagraim. “It forces the purported employees to take as many trips as possible, putting their lives in danger.”

However, Bagraim also argued that South Africa’s courts were likely to rule that the drivers were actually employees.

This was because many worked the minimum number of hours in a month to meet that definition, and their remuneration was too low for independent contract work.

“The courts are quite harsh in determining whether a person is actually an employee or an independent contractor,” said Bagraim.

“In this particular instance, I think they would be hard-pressed to prove they are true independent contractors.”

Bagraim said that unless the drivers work for several companies at different times, they cannot be considered independent contractors.

“The law is absolutely clear” he continued.

“Should anyone work more than 24 hours in one month for the same employer and they earn less than R21,000 per month, then they automatically with the effluxion of time and by deeming of the law, become permanent employees.”

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