LatAm List – Startups that use contractors to provide more flexible and cost-effective service, such as Uber, have recently come under scrutiny for skimping on benefits for those workers. Colombian delivery company, Domicilios, has decided to change that trend. They plan to formalize labor, hiring their contractors on a shift basis and paying social security to provide fairer working conditions.
Domicilios is a direct competitor to Latin America’s biggest delivery app, Rappi. While this measure will raise Domicilios’ operating costs by 32.5%, customers will not see prices increase. Domicilios’ Colombia Managing Director, Camilo Saristi, stated:
“We want to demonstrate that you can make money and be part of a collaborative economy, paying social security.”
Saristi encourages other companies following the same business model in Colombia to provide the same benefits for their employees.
Read more in PulsoSocial.