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Algorithm used by Deliveroo in Italy ruled as discriminatory

A  tribunal found the algorithm to be ‘blind’ to the reasons why workers may cancel their shifts, and who were penalised as a result.

Trade unions won a legal challenge: On 31 December 2020, the tribunal of Bologna, Italy upheld an appeal filed by Italian trade unions against the algorithm used by Deliveroo to determine the ‘reputational ranking’ of its delivery drivers. Deliveroo will have to pay €50k to the appellants and publish the ruling on its website.

A ‘blind’ algorithm: The judge decided that the algorithm (called ‘Frank’) is discriminatory because it is ‘blind’ to the reasons why drivers cancel their shift. The algorithm does not make any distinction between those who cancel due to sickness or strike action, and those who do so for futile motives. Drivers who failed to cancel with at least one day’s notice would go down in the ranking.

Deliveroo is likely to appeal: In a statement, Deliveroo’s General Manager for Italy said the company will consider appealing the decision, and noted that the algorithm has not been in use since November 2020, and has been replaced by a ‘more modern’ system not relying on the same stats as the previous one.