Just Eat Takeaway will close its in-house delivery service in Paris, Europe's largest meals delivery company said, a move which could impact around 100 jobs.
Just Eat has championed employing its own couriers in Europe rather than using "self-employed" couriers as is common in the gig economy and favoured by competitors such as Uber and Deliveroo, which are both bigger in France.
Just Eat said it was at a competitive disadvantage in France as a result, and abandoned its in-house delivery operations in most of France in 2022 in favour of a third-party courier service, Stuart, which uses self-employed couriers.
In Paris the company will now move to a similar model, a Just Eat Takeaway France spokesperson said in a statement.
'Presumption Of Employment'
CEO Jitse Groen, speaking to reporters, criticised the European Union's failure to approve the Platform Work Directive, a law which would create a 'presumption of employment' for gig workers.
"I think it's a shame that European governments, especially the ones that have very stringent strong (labour) beliefs, such as France, are opposing this legislation," he said.
Earlier this week, Just Eat Takeaway said it expected to report 2023 core earnings ahead of its forecast, after it broke even on free cash flow in the second half of 2023.
Elsewhere, rival Deliveroo has said it would expand into non-food retail, betting on toys, electronics and other goods to help drive growth, after it reiterated 2023 profit guidance.
The group, which competes with Just Eat Takeaway.com and Uber Eats in markets in Europe, the Middle East and Asia, said it had launched 'Deliveroo Shopping' on its app, which will allow customers to buy non-food items, including DIY products through a partnership with hardware supplier Screwfix.