New EU Rules Could Increase Food and Grocery Delivery Costs in Ireland
DUBLIN: Food and grocery delivery services in Ireland could become more expensive as new European Union rules seek to strengthen employment protections for workers using digital delivery platforms.
Under the EU’s new Platform Work Directive, companies that exercise significant control or supervision over workers may be required to classify them as employees rather than independent contractors. Platforms will also have to demonstrate that workers are genuinely self-employed where that status is claimed.
The changes are expected to increase operating costs for delivery companies, potentially leading to higher commissions for restaurants and increased delivery charges for customers. However, the actual impact on prices will depend on how individual companies manage the additional employment costs.
New rules due by December 2
The EU Platform Work Directive requires member states to introduce measures addressing the employment status of people working through digital platforms. The deadline for implementing the directive is December 2.
Ireland is expected to implement the requirements through regulations rather than a separate Act of Parliament. Draft provisions are currently being examined by the Office of the Parliamentary Counsel.
The new framework will also examine the automated systems platforms use to monitor workers, allocate tasks and manage their performance.
Some delivery companies allow workers to appoint substitutes to complete orders on their behalf. However, concerns have emerged over the misuse of these arrangements, including the practice of renting out accounts to other individuals. Under the new rules, platforms may face greater scrutiny over the conditions under which substitutions are permitted.
Delivery platforms have traditionally argued that their workers are independent contractors because they can choose their working hours, reject orders and provide services to competing companies. However, the new rules will place greater emphasis on the actual working relationship, including the level of control exercised by companies, rather than relying solely on the terms of employment contracts.
Ireland’s Supreme Court ruling in the Karshan case in 2023 is also relevant to the debate. The court examined the employment status of Domino’s pizza delivery drivers and established a framework for determining whether workers should be classified as employees. The judgment highlighted that contractual provisions allowing a limited right to appoint a substitute do not automatically establish self-employment.
Consequently, substitution arrangements offered by delivery platforms are likely to receive closer examination, particularly where they may facilitate practices such as account rental.
Potential impact on restaurants and customers
Delivery platforms currently charge restaurants commissions that can reach approximately 35 per cent of an order’s value. For businesses operating on relatively narrow profit margins, any further increase in these charges could create significant financial pressure.
To offset higher employment costs, delivery companies may increase the commissions charged to restaurants or raise delivery fees for customers. There could also be longer waiting times if companies adjust their operations or reduce the number of available delivery workers.
Larger platforms with stronger financial resources may be able to absorb some of the additional costs, at least in the short term.
Meanwhile, some restaurants are considering employing their own delivery drivers on an hourly basis rather than depending entirely on third-party platforms. Such arrangements could also raise questions about which party—the restaurant or the delivery platform—should be regarded as the employer, depending on how the working relationship is structured.
Grocery delivery becomes an increasingly important market
Alongside restaurant takeaway services, grocery delivery is emerging as an increasingly significant source of revenue for digital delivery platforms.
Grocery orders accounted for 18 per cent of Deliveroo’s total transactions during the first half of 2025, compared with 15 per cent in the same period the previous year.
The company has expanded its partnerships with major retailers, including Marks & Spencer and Tesco, while also testing grocery delivery services with Aldi in the UK.
Deliveroo founder Will Shu has suggested that grocery delivery could eventually overtake takeaway food as a major part of the company’s business.
The expansion provides delivery workers with additional opportunities during traditionally quieter periods between lunch and dinner. It also allows platforms to generate revenue beyond the peak hours associated with restaurant orders.
Drones and robots introduce further changes
Delivery companies are also experimenting with new technologies, including drones and autonomous robots, in an effort to make deliveries faster and more cost-effective.
Deliveroo tested drone deliveries in Dublin in 2025. However, its partner company reportedly failed to secure the necessary planning permission amid concerns about noise pollution and subsequently ceased operations in June.
In October, Deliveroo began robot-based deliveries in London as part of its efforts to explore alternative delivery methods.
Nevertheless, the company has indicated that robots cannot completely replace human delivery workers, particularly during busy periods. Demand on Friday evenings and other peak periods would still require a substantial number of riders, while robots may be less useful during quieter times.
Although drones and robots could eventually take over some short-distance deliveries, human workers are expected to remain essential for handling the majority of orders during busy restaurant hours.
Importantly, the introduction of new delivery technologies does not remove the need to comply with employment legislation. Workers who continue to operate through digital platforms will still be covered by the relevant employment-status rules.
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