Since the pandemic, the demand for food delivery has exploded. In light of this surge, apps like Uber Eats, Postmates, Grubhub, and a slew of others have come under scrutiny for their extremely exploitative labor practices. Many of these companies, as well as fast food corporations, have announced plans to use drone technology to carry out delivery. Drones would allow them to cut down on labor costs, highlighting the precarious nature of many jobs in the ‘gig economy’ that can be eliminated once the technology exists to do so.
For now, the technological advancements needed to apply drone technology for delivery are not yet available at scale. Companies who hope to take advantage of drones are interested in a fully integrative system where orders would come in, and a drone would be assigned to pick up and deliver the goods in a timely manner. In 2021, Grubhub rolled out an automated delivery service using robots at the Ohio State University, but this is far from the long-term objective of an aerial delivery force.
Fox News reported in March that Starbucks, McDonald’s, and Walmart had conducted tests in partnership with Flytrex, a drone-delivery start-up.
In November, Chick-fil-A became the latest company to test the use of drones in delivery.
Food delivery companies remain unprofitable
Without a formal employment contract, delivery workers do not receive benefits, and at times the deliveries they are assigned through the application do not amount to minimum wage, even when accounting for tips provided by the customers. As contractors, these workers, and others in the ‘gig economy’ like ride-share drivers, are not entitled to any time off, healthcare, or retirement benefits.
This model, which is under fire from labor leaders, allows companies to keep labor costs low, but even then, many delivery platforms remain unprofitable. Tricia McKinnon, writing for Indigo 9 Digital, reported earlier this year that Uber Eats has never made a profit. Additionally, the only competitor to report a positive balance sheet, DoorDash, did so in the second quarter of 2020, when millions were stuck at home during the early days of the COVID-19 pandemic.
Read more from AS USA:
Automated delivery is seen as a lifeline for food delivery companies
The ability to lower labor costs could be what is needed to make this food delivery model profitable. However, the elimination of these jobs would have serious repercussions for workers who depend on them. And ‘gig workers’ are not alone; automation threatens many other professions, such as bank tellers, food service workers, cashiers, factory workers, truck drivers, and taxi drivers. Throughout history, capital owners have used technology to replace human workers. Therefore, labor leaders advocate for worker control over the use and implementation of automotive technology.
Technological advancement does not have to be a threat to workers
The advancement of technology has revolutionized various fields, but rarely have workers benefited. Instead, labor productivity over the last forty years has increased, and wages have not kept pace. The Economic Policy Institute refers to this phenomenon as the ‘Productivity–Pay Gap’, and automation is only one of the factors that have contributed to this widening gap.
But if we take the example of drones in food delivery service, we can begin to see how automation plays a role. If delivery workers were to control the use of drones, they could integrate them into their operations in such a way that complimented, rather than compete, with their own labor. For instance, drones could carry out deliveries within a certain distance. It’s possible to imagine a system where drones deliver some orders while workers deliver those that are more difficult or impossible for a flying machine. This way, higher compensation could be provided to delivery workers who carry out more complex routes.
Unfortunately, workers are often left out of this process, and instead of technology reducing their workload, it is used to eliminate their jobs. If unemployment increases, workers that remain in the labormarket often have reduced bargaining power as there are people willing to take their place should they make demands of their company.