Colombian delivery apps to provide social security coverage

The Colombian government led by Gustavo Petro reached a preliminary agreement with Alianzaln, the representative entity for prominent delivery companies like Rappi, Didi, and several others.

This agreement would ensure social security benefits for around 120,000 workers. Under the settlement, businesses could pay 60% of their employees’ social security contributions, even if they remain independent accountants.

This new arrangement could have a significant financial impact. For example, if these changes are approved, Rappi could have to spend over $1.4M more each year.

Petro is relaunching a labor reform with the intention of revising Colombia’s current economic model. The Senate and Chamber of Labor Commissions must vote on Petro’s proposal before it reaches Congress. Some labor organizations worry that strict labor laws could lead to more unemployment, while investors pressure app companies to cut costs and generate profits. 

Read more on Bloomberg Linea

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