Uber warns illegal migrant crackdown could raise takeaway prices

A new crackdown by the UK government on illegal migrant workers in the gig economy is raising concerns about its potential impact on takeaway prices, Uber has said.

The major food delivery companies including Uber, Just Eat and Deliveroo have partnered with the Home Office to increase security checks in order to combat illegal working.

In recent filings at Companies House, Uber’s UK division stated it supported a Home Office initiative to discourage smugglers from risking trips on small boats across the channel to Britain.

In this connection, Uber’s UK division warned that “new legislative requirements could have an adverse impact on our business including expenses necessary to comply with such laws and regulations.”

It has been observed that takeaway apps have become a way for undocumented workers in the UK to earn a living due to historically limited right-to-work and eligibility checks.

The industry's limited barriers to entry and flexible nature make it attractive to those who may be working illegally.

Over the past year, major food delivery companies Deliveroo, Uber Eats and Just Eat have voluntarily introduced security measures to prevent illegal working.

This initiative which includes facial recognition and document checks, it is a significant response to pressure from the UK government to crack down on the use of their platforms by undocumented workers.

Yvette Cooper, being a home secretary, planned to introduce a law that would require all gig economy companies to check the legal status of their workers.

This significant move was intended to deter migrants from attempting to cross the Channel to Britain by removing the incentive of finding work.

Officials have also started to disseminate data on known asylum hotels with delivery companies so they can monitor attempts made by undocumented workers.

In August, the Home Office’s immigration enforcement teams claimed to have spoken to 1780 individuals, resulting in 280 arrests for suspected unauthorized employment.

Out of those arrested, 53 individuals are now having their asylum status reviewed by authorities.