The Deliveroo share price remains under pressure this Thursday, as trade unions are insisting on the conversion of the company’s gig workers to full employees.
Deliveroo had secured a reprieve from a Belgian court in its battle against the European Commission’s directive to convert its independent contractors to regular employees. However, the European Trade Union Confederation (ETUC) still insists that the EU’s platform worker proposal mandates Deliveroo and other gig companies to grant full employee status to its workers.
The proposal from the European Commission seeks to introduce a testing system where five pre-set criteria will be used to determine the eligibility of gig workers for automatic re-classification as employees rather than self-employed contractors. This could lead to as many as 4 million gig economy workers having their employment status changed in what will be a game-changing evolution of gig economy work in Europe. The cost implications to Deliveroo has clearly spooked investors, who now worry about the company’s ability to survive the situation.
The Deliveroo share price has seen a mind-boggling loss of value ever since the European Commission decision came on board in December 2021. The stock has lost half of its 26 November value and is presently 2.38% on the day as of writing.
Deliveroo Share Price Outlook
The price action appears to have settled at the 151.00 psychological support area. A further decline targets the 141.4% Fibonacci extension at 136.95, with 109.45 also in the running as potential support.
On the other hand, a bounce on the current support allows for a potential return towards 167.75 (17-19 January lows), before 180.00 enters the mix as a psychological resistance. 192.30 and 214.15 are additional targets to the north.