The gig economy - a regulatory challenge

If you set foot outside the door, at least in Luxembourg City, it shouldn't take long before you notice people – mostly men – riding through the streets on bicycles with rectangular blue, occasionally red or orange rucksacks, walking past you or getting out of cars parked at the side of the road. They want to deliver their ordered food, ideally still warm, from a wide variety of restaurants to hungry customers as quickly as possible and earn a living with it.

Since the Covid-19 pandemic, food couriers have become a visible part of Luxembourg's cityscape. They work for international giants such as Wolt and Uber Eats, as well as the local companies Wedely and MiamMiam.lu, to name just a few.

How does platform work work?

There are two basic types of platform work – firstly on-site gigs, i.e. services such as driving, delivery and cleaning services, and secondly online gigs or "cloudwork", which basically work across borders. Platforms provide the technical infrastructure through which orders are brokered, services coordinated and payments processed. They act as intermediaries without carrying out the work themselves.

The principle is as follows: Workers create a profile, upload the required documents and accept the contractual conditions specified by the platform. In many cases, they are categorised as independent contractors or "partners". They must provide the necessary work equipment, whether computer or vehicle, themselves.

The placement of orders is mainly automated. Algorithms match supply and demand, taking into account various parameters such as location, availability, ratings, qualifications or previous success rates. In the case of location-based services, workers usually receive job requests by push message and have to accept them within a short period of time, whereas on digital freelance platforms, workers actively apply for advertised projects.