Who Pays For Your Home Delivery?
07. January 2026Technology Doesn't Justify Injustice
Karen Ósk Nielsen Björnsdóttir wrote an article on home delivery services that was published in Vinnan just before Christmas, and it likely did not go unnoticed by anyone who watched RÚV’s New Year’s satire what is currently happening in the Icelandic labour market.
Home delivery services have increased significantly in recent years and have now become a permanent part of the operations of many retail businesses. Alongside this development, digital platforms such as Wolt have emerged as intermediaries in the distribution of goods. This shift has an impact on retail itself and, in particular, on retail employees.
LÍV’s attention is focused on how this development is shaping working conditions in retail and related occupations. While digital platforms make it easier for consumers to access goods, their operations largely rely on delivery work that is often organised as independent contracting, outside the traditional labour market framework. In such arrangements, workers are deprived of fundamental rights that retail employees enjoy under collective agreements, including predictable working hours, wages, holiday entitlements, and protection against income volatility.
Calculations show that when all delivery-related costs are taken into account, actual earnings can fall well below minimum wages on the general labour market. This development creates a risk of undercutting and distorts competition for retail businesses that operate in accordance with collective agreements and take responsibility for the welfare of their employees.
LÍV emphasises that technological progress and new distribution models must not lead to a deterioration of pay and rights. Employees in retail and related service sectors are entitled to fair wages and clear working conditions, regardless of the technology or business model used. Home delivery services must evolve in line with the Icelandic labour market model, not at the expense of those who perform the work.
Source: Vinnan