It is a little over two weeks since online take-out behemoth Delivery Hero announced that it was shuttering Valk Fleet, its food delivery and logistics startup that let quick service restaurants outsource delivery. Since then, and amidst claims by both contract drivers and staff that they are owed money, Valk Fleet UK has put itself into ‘administration‘ — a voluntary process in the UK when a company has incurred debt that it is unlikely to be able to service.
This is what the ugly face of the so-called ‘gig economy’ looks like.
Related to this, a number of Valk Fleet’s management team tell TechCrunch they have been on the receiving end of “death threats” from disgruntled drivers who, due to their self-employed status, have no employment rights beyond the contract they signed with Valk Feet. This is what the ugly face of the so-called ‘gig economy’ looks like. Scott Fletcher, a member of Delivery Hero’s management team, confirmed that ex-Valk Fleet staff have received threats and says that the police have been informed. “They were largely directed at the head office staff and management,” he says, pointing out that those staff are also affected by Valk Fleet UK being put into administration and do not receive different treatment in terms of any money owed. “When the company was put into administration, there were outstanding payments to both drivers and staff,” adds Fletcher. “All payments were frozen by the administrator”. He also reveals that there was a “very large amount of capital” in Valk Fleet’s bank account when administrators were called in. How far that capital will go to cover the startup’s debts and liabilities remains to be seen. Creditors, including ex-drivers and staff, will need to put in a claim and wait patiently in line to be compensated. A meeting hosted by Valk Fleet’s administrators is due to be held on 7th of April. Grow at any cost Meanwhile, , and with a burn-rate that at one point in time included a monthly wage bill in the UK of almost £700,000. “Grow at any cost,” is a phrase cited by numerous ex-members of staff I’ve talked to, a directive that is said to have come from the very top of Valk Fleet. And grow the one year-old company did. At its peak, Valk Fleet UK was delivering 100,000 monthly orders, and had secured a key account in the form of Burger King, which sources tell me rolled out to over 40 Burger King franchisees with plans to reach 200.
The question of why Valk Fleet was unable to reach “acceptable economics” is likely to be debated for months if not years to come.
It is a little over two weeks since online take-out behemoth Delivery Hero announced that it was shuttering Valk Fleet, its food delivery and logistics startup that let quick service restaurants outsource delivery. Since then, and amidst claims by both contract drivers and staff that they are owed money, Valk Fleet UK has put itself into ‘administration‘ — a voluntary process in the UK when a company has incurred debt that it is unlikely to be able to service.
This is what the ugly face of the so-called ‘gig economy’ looks like.
It is a little over two weeks since online take-out behemoth Delivery Hero announced that it was shuttering Valk Fleet, its food delivery and logistics startup that let quick service restaurants outsource delivery.
Since then, and amidst claims by both contract drivers and staff that they are owed money, Valk Fleet UK has put itself into ‘administration‘ — a voluntary process in the UK when a company has incurred debt that it is unlikely to be able to service.
Related to this, a number of Valk Fleet’s management team tell TechCrunch they have been on the receiving end of “death threats” from disgruntled drivers who, due to their self-employed status, have no employment rights beyond the contract they signed with Valk Feet. This is what the ugly face of the so-called ‘gig economy’ looks like.
Scott Fletcher, a member of Delivery Hero’s management team, confirmed that ex-Valk Fleet staff have received threats and says that the police have been informed. “They were largely directed at the head office staff and management,” he says, pointing out that those staff are also affected by Valk Fleet UK being put into administration and do not receive different treatment in terms of any money owed.
“When the company was put into administration, there were outstanding payments to both drivers and staff,” adds Fletcher. “All payments were frozen by the administrator”. He also reveals that there was a “very large amount of capital” in Valk Fleet’s bank account when administrators were called in.
How far that capital will go to cover the startup’s debts and liabilities remains to be seen. Creditors, including ex-drivers and staff, will need to put in a claim and wait patiently in line to be compensated. A meeting hosted by Valk Fleet’s administrators is due to be held on 7th of April.
Meanwhile, , and with a burn-rate that at one point in time included a monthly wage bill in the UK of almost £700,000. “Grow at any cost,” is a phrase cited by numerous ex-members of staff I’ve talked to, a directive that is said to have come from the very top of Valk Fleet.
And grow the one year-old company did. At its peak, Valk Fleet UK was delivering 100,000 monthly orders, and had secured a key account in the form of Burger King, which sources tell me rolled out to over 40 Burger King franchisees with plans to reach 200.