A ruling by the Supreme Court of the Province of Buenos Aires jeopardizes the delivery platform model and threatens to affect the work of thousands of delivery people. The judicial decision, aligned with the position of the Axel Kicillof government, supported sanctions against companies such as Rappi and PedidosYa and consolidates regulatory progress that could
completely stop the work of platforms.The case originated from inspections by the Buenos Aires Ministry of Labor, which detected alleged “labor breaches” in these companies. The firms questioned both the minutes and the sanctions, but the Court rejected their arguments and ended up validating the procedures and the conclusions of the inspectors
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The ruling recognizes the capacity of the provincial State to oversee and, in fact, to advance the qualification of the employment relationship. Under this criterion, the activity of delivery people meets typical conditions of formal employment, which opens the door to requiring their registration under
traditional labor schemes.This involves a profound change. Platforms may be forced to register delivery people, pay social security, take out insurance and comply with all current labor regulations. In a model that works on flexibility and variable costs, the impact would be immediate.
