Description
Online food delivery (OFD) apps have become essential players in the restaurant industry worldwide, as they offer a way for restaurateurs to maximise profit by expanding their operations off premises without focusing on the logistic challenge. In August 2021, Spain was the first European country to rule over the delivery workers status forcing OFD companies to have regular contractual relationships with them. Even though, Spain is leading the workers´ rights wave regulation through the EU, this does not mean that OFD platforms are abiding to the law. Since the ruling took effect in 2021, there are yet many different interpretations of the norm as to the workers´ contractual situation (Nieto, 2021). Some intermediary transporting firms appeared to serve as riders´ clusters but, there is still evidence that the line of command is clearly given by the delivery apps, which is one of the key elements that the Supreme Court used to rule in favour of the riders (Ginès i Fabrellas, 2018). This poses a major challenge to the industry since OFD companies consider the Gig economy based on self-employment is the most suitable option for all parties concerned.
Previous studies describe this ruling positively as it seeks for equal rights for workers, and it sets a clear presumption of employment (Báez Laguna, 2021; Imaz Montes & Gil de Gómez, 2022; Nieto, 2021). In any case, there is also space for critics as it missed a crucial opportunity to go further on the regulation. The effects of this Law have been widely studied from a lawful perspective yet, there is no consistent evidence on the interaction of this legal breakthrough and the customers attitude towards it. Some post pandemic studies place collective solidarity as a key player on consumers choices, specifically in the food sector. Thus, one could argue that a sense of social commitment to equal rights may have a positive impact on customers ́ purchase intentions. However, do riders ́ working conditions have any effect over customers´ satisfaction, value perception, purchase intentions or even tipping behaviour? To address this research question, this study delves into how consumers´ choice behaviour and purchase intentions are impacted by the new legal conditions (Rider Law) affecting OFD riders. This analysis will consider from a theoretical lens the theory of consumption value (TVC) by Sheth et al. (1991), as it offers a way to understand why consumers make the choices they do, when they have buying intentions.
To this end, this study conducted an online experiment among 265 participants to determine whether there are differences between OFD orders that showcased information regarding riders´ conditions and those which did not display any information on this regard. Therefore, the study mainly sought to analyse the causal impact of abiding to this change in the law on the consumer outcomes. The results show that consumers are more satisfied (P=0.0004), they agree more with the value of the order (P=0.0277) and they display higher purchasing intentions (P=0.0173) when they know that riders work under fairer conditions. Nevertheless, there is no difference regarding the tipping behaviour (P=0.6967) which might suggest that customers prefer a fairer working environment for riders rather than tipping more. These results entail important managerial implications for OFD companies and restaurants since (i) it places social sustainability as a significant element on consumers purchasing behaviours and (ii) it suggests that OFD companies which abide by the law may have an economic payoff.
