Meeting with Bolt CEO Markus VILLIG
Ref. Ares(2021)3125247 - 10/05/2021
Ref. Ares(2022)1661590 - 07/03/2022
Virtual meeting, 26/04/2021, 16:00, CAB SCHMIT 625
Commissioner Schmit
Jobs and Social Rights
Meeting with Bolt CEO Markus VILLIG
Bilateral discussion on the platform work initiative
Virtual meeting, 26/04/2021
CAB room VTC
16:00 – 16:30
Member of Cabinet in charge:
Main contributors:
Ana Carla PEREIRA
Briefing coordination:
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Meeting with Bolt CEO Markus VILLIG
Virtual meeting, 26/04/2021, 16:00, CAB SCHMIT 625
Scene setter
You are meeting with Bolt CEO Mr Markus VILLIG. In September 2020, you met with
him in the context of the roundtable discussion with platform work experts.
This discussion wil revolve around the Commission’s forthcoming initiative on platform
work. This is an increasingly sensitive topic for
Bolt, a fast-growing platform from
Estonia which fears its business model based on self-employed drivers might be
threatened if the EU initiative leads to their reclassification as workers.
Mr VILLIG’s pivot might build on Bolt’s co-drafting of the
Statement of Principles of EU
technology platforms, a document committing four EU-based platforms (Bolt,
Delivery Hero, Glovo and Wolt) to a “purpose-driven business model” based on the
European values and social model (cfr. Annex section for more details).
Mr VILLIG will make the case that people working through platforms should
remain self-employed, while being given more social rights and better social
protection.
Bolt is not in principle against a third category status, but does not actively advocate it.
Table of Contents
Speaking points .............................................................................................................. 3
Defensives ...................................................................................................................... 4
Background .................................................................................................................... 5
Annexes.......................................................................................................................... 8
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Meeting with Bolt CEO Markus VILLIG
Virtual meeting, 26/04/2021, 16:00, CAB SCHMIT 625
Speaking points
[General remarks]
Bolt is a very important player in Europe’s platform economy,
providing job opportunities to tens of thousands of people, as well as a
service that is appreciated by consumers.
The European Commission appreciates the benefits of the platform
economy and of platform companies such as Bolt and wants to make
sure that these benefits are spread equally and accessed fairly.
Challenges remain, particularly as regards the correct classification of
the
employment status of many people working through platforms, as
well as the transparency and accountability of
algorithmic management
and surveillance.
The Commission is looking into these issues in the context of its
forthcoming initiative on platform work, while keeping an eye on the
development of courts’ relevant jurisprudence.
The Commission is of course
very keen to hear the views of platforms
and of people working through them.
[On the Statement of Principles of EU technology platforms]
Your
Statement of Principles of EU technology platforms is an important
step towards building
a sustainable business model for platform work,
balancing flexibility and decent working conditions.
I read the statement with great interest and appreciated the three actions
to which you commit in order to strengthen the European social model
and make innovation work for all.
[On the Commission’s initiative]
As you will know, the Commission is looking into ways to improve the
working conditions in platform work and, on 24 February, launched a two-
stage social partners’ consultation on the matter.
The first stage, which ended on 7 April, asked workers’ and employers’
representatives for their views on the direction of a possible EU initiative
on the working conditions in platform work.
The second stage, which will be launched before the summer, will ask
social partners for their views on the content of such an initiative.
If they decide not to enter negotiations on the matter, the Commission
will possibly put forward a legislative initiative by the end of 2021.
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Meeting with Bolt CEO Markus VILLIG
Virtual meeting, 26/04/2021, 16:00, CAB SCHMIT 625
Our objective is to ensure that those working through platforms are
protected by minimum standards regarding working conditions and thus
contribute to a sustainable development of the platform economy.
We need to address issues that are fairly “traditional” such as access to
social rights already available for other workers but also new phenomena
that are totally new such as algorithm management.
The cross-border dimension is particular important if we wish to develop
a strong digital single market. Determining the jurisdiction of where the
activity takes place will have implications for access to the access to
social rights.
An EU intervention will certainly help to decrease the level of legal
uncertainty now faced by platforms operating in different Member States
Defensives
Bolt is keen to provide more social protection and growth opportunities
such as insurance and re-skilling programmes to its drivers and riders.
However, we fear this may prompt their reclassification from self-
employed to workers.
The Commission welcomes Bolt’s and any other company’s initiatives to
improve the working conditions of people on platforms.
The reclassification of people from self-employed to workers is an
empirical exercise, based on evidence and facts.
So far, the courts have not based their rulings on reclassification on the
provision of social protection or growth opportunities by platforms, but
rather on the finding that the people concerned were in a position of
subordination vis-à-vis the platform.
The key question is how much control a platform exerts over a person’s
provision of a service, be it directly or indirectly through the use of
algorithms.
Will the Commission’s initiative reclassify people on platforms from self-
employed to workers?
The employment status of people working through platforms is one of the
issues that the Commission is looking into in the context of its potential
legislative initiative.
We are observing the courts’ growing jurisprudence on the matter, and
see that reclassifications take place when evidence points to a
misclassification as self-employed, despite a factual relationship of
subordination.
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Meeting with Bolt CEO Markus VILLIG
Virtual meeting, 26/04/2021, 16:00, CAB SCHMIT 625
The Commission is aware that different platforms have different business
models. In our potential legislative initiative we will aim to balance
flexibility with improved protection for people working through platforms.
Will the Commission’s initiative introduce a European third category
status for people working through platforms?
The Commission is very aware of Member States’ different sensitivities
on social policy and does not intend to create a European definition of
what is and what is not a worker.
We want to ensure decent working conditions for people working through
platforms and legal certainty for platform companies to continue offering
their services.
In light of this, and based on the evidence gathered so far, a third
category status does not seem to be the best approach to regulate
platform work.
Background
[On the platform work initiative]
The Commission President’s Political Guidelines commit to look into ways to
improve the working conditions of people working through platforms.
The Commission Work Programme for 2021 includes a
legislative initiative
under Article 153 TFEU to improve the working conditions in platform work.
After extensive fact-finding, part of which is still ongoing, the Commission
launched a two-stage social partners consultation on the matter on 24 February.
The first stage, asking for views on the direction of a possible initiative, ended
on 7 April. It received
14 responses from officially recognised social
partners.
The second stage, which will ask for social partners’ views on the content
of a possible initiative, will be launched before the summer. If social
partners decide not to enter negotiations, the Commission will possibly present
a legislative proposal by the end of 2021.
We have already engaged in extensive exchanges with other stakeholders
at both political and technical level in the run up to the launch of the social
partners consultation.
Bolt representatives have met with the Commission, both at Cabinet and
services level, bilaterally and in stakeholder fact-finding workshops, at least 8
times since October 2019.
The Open Public Consultation launched in the summer of 2020 in the context of
the Digital Services Act (DSA) already included a section on the situation of
self-employed people working through platforms. It is not yet decided if another
open public consultation would be organised but in any case we will continue to
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Meeting with Bolt CEO Markus VILLIG
Virtual meeting, 26/04/2021, 16:00, CAB SCHMIT 625
discuss with different stakeholders throughout the process leading up to a
possible Commission proposal.
[Bolt: business profile]
Bolt was founded in Estonia in 2013 as “Taxify” by brothers Markus and Martin
VILLIG. Bolt is today active in 200 cities and 42 countries worldwide, including
17 EU Member States (AT, CY, CZ, EE, ES, FR, HR, HU, IE, LT, LV, MT, PL,
PT, RO, SE, SK) and the UK.
Bolt calls itself a “multi-model online transport company”, referring to its core
business (on-demand ride-hailing) as well as to its new side-services like micro-
mobility (electric bike and scooters rental) and its growing delivery services
(mostly meals prepared by third-party restaurants, but increasingly groceries
from supermarkets and other goods as well).
Bolt has over 1million drivers globally and 350K active in the EU, making it
the second largest platform in Europe after Uber.
Bolt claims to be “the European answer to global giants in the platform sector”,
stressing that its business model is different from that of competitors like Uber.
its avowed strategy consists in taking smaller commission fees from
drivers (15%, against an average of 20/25% charged by Uber)
and allowing
them high flexibility of choice, in terms of turning down tasks and working for
other platforms.
Bolt requires its drivers to accept 40-50% of tasks assigned lest it
terminates its relationship with them. It claims Uber has a requirement of 80-
90%. Bolt has 300.000 drivers registered in Europe, avowedly making it the
bloc’s second company after Uber in terms of self-employed opportunities
offered through online platforms.
[Bolt’s stance on the EU initiative on platform work]
Bolt supports the EU’s effort at bringing legal clarity in the platform economy
through harmonised rules and has often cited the P2B regulation as a best
practice.
Bolt is opposed to the reclassification of ride-hailing drivers from self-employed
to workers. In a meeting with DG Korte on 17 March 2021 (cfr. Annex for further
info),
Bolt called on the Commission to consider a European third
category status and/or bringing platform work under the scope of
temporary agency legislation.
Bolt claims that
EU harmonised rules on the employment status would
bring down the current ‘wage premiums’ over national minimum wages
enjoyed by its drivers and would negatively affect the number of drivers
currently working through its app.
[Overview of national court rulings concerning Bolt]
Despite the growing size of its business, Bolt has thus far been involved in only
a few court proceedings concerning or touching upon the employment status of
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Meeting with Bolt CEO Markus VILLIG
Virtual meeting, 26/04/2021, 16:00, CAB SCHMIT 625
its drivers, perhaps because the expansion to countries other than Estonia has
only occurred recently.
In 2018 and 2019, Bolt (then ‘Taxify’) was sued by associations of taxi-drivers in
Slovakia1 and Romania2 for anti-competitive behaviour.
United Kingdom
In March 2020, the Independent Workers’ Union of Great Britain (IWGB)
launched a claim against Bolt, concerning the employment status and dismissal
of a driver.3
The driver was allegedly dismissed on the grounds that his acceptance rate for
rides was too low, but IWGB argues that he was not subject to agreed minimum
hours.
Being tied to minimum hours is, in IWGB’s reasoning, a sign of subordination.
Hence, the driver should be reclassified as a worker.
Estonia
In March 2021, an Estonian court ruled that in the case of a car-accident with
injuries and financial compensation to be paid, Bolt would be responsible for
covering such costs, and not the driver involved.4
[Markus VILLIG’s CV]
Mr Markus VILLIG co-founded Bolt (formerly
Taxify), when he was only 19-years-old, in 2013.
Bolt is an on-demand transportation platform
providing ride-hailing, food delivery and scooter
sharing services. It is one of Uber’s main
competitors.
Bolt has its headquarters in Estonia. It employs
around 1,200 people, mostly in Europe. Half of its
operational business is taking place in Africa.
Markus Villig sits on the innovation council for the EU. He holds a Bachelor’s
degree in Computer Science from the University of Tartu.
1 More details availabl
e online.
2 More details availabl
e online.
3 More details availabl
e online.
4 More details availabl
e online.
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Meeting with Bolt CEO Markus VILLIG
Virtual meeting, 26/04/2021, 16:00, CAB SCHMIT 625
Annex
Bolt’s co-drafted
Statement of Principles of EU technology platforms
SoP food delivery
platforms.pdf
FLASH REPORT - Meeting between Bolt and DG EMPL - 17/03/2021
Participants:
Bolt
Dominick MOXON-TRITSCH, VP for Regulation and Public Policy, Bolt
Welmoed NEIJMEIJER, Head of Public Policy - Benelux, Bolt
Aurélien POZZANA, Head of Public Policy - Western Europe and the EU, Bolt
European Commission
Joost KORTE, Director-General, DG for Employment, Social Affairs and
Inclusion
Main takeaways:
Bolt presented its business: they’re a ride-hailing platform founded in Tallinn,
Estonia. They’re Europe’s 3rd fastest growing technology company and one of
its most valuable unicorns. Estimated value: 2 billion EUR.
Bolt operates through 350K self-employed drivers in 42 countries worldwide,
mostly in the EMEA region. They’re active in 18 EU Member States, which
makes them the 2nd largest player in Europe’s platform economy after Uber.
Bolt charges drivers a 15% commission fee, compared to Uber’s 25%. Bolt
mentioned Uber in a number of instances, describing its business model as
negative for both drivers and Europe’s social market economy as a whole.
Bolt said it fully supports DG COMP’s initiative to grant self-employed people
the right to collective bargaining.
On DG EMPL’s initiative, Bolt asked DG
EMPL not to reclassify its drivers as employees.
The reclassification of its drivers would lead to decreased flexibility and
earnings, particularly since Bolt would have to force drivers into fixed shift-
schemes entailing working weeks of up to 48h.
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Meeting with Bolt CEO Markus VILLIG
Virtual meeting, 26/04/2021, 16:00, CAB SCHMIT 625
Bolt claims it has been polling its drivers extensively, finding they value flexibility
and their current above-minimum-wage earnings more than social protection
benefits linked to an employment status.
Bolt said that a reclassification would cause confusion as to which platforms
would be liable for social contributions, since 80-90% of drivers are active on
several apps.
Bolt pointed to the post-pandemic politics of labour markets, when
governments will face the pressure of flexibilising work for the sake of
job-creation.
In this scenario, EU legislation limiting the flexibility of
platform work may not be as welcome as now.
In view of this, Bolt acknowledged the need to improve the social and
working conditions of its drivers and suggested a third category status
could be a way forward, as well as extending temporary agency work
legislation to cover platforms.
COM thanked Bolt for reaching out and expressed appreciation for the
challenges raised by Bolt, particularly regarding the post-pandemic politics and
the risks of killing off a valuable source of jobs and extra income such as
platform work.
COM said it hasn’t made its mind up on the third category status, but pointed to
the fact that Member States seem to overwhelmingly oppose the idea. COM
invited Bolt to keep in touch and reach out again with further reflections on
possible solutions.
COM underlined that part of the purpose of DG EMPL’s initiative is also to give
a more sustainable foundation to the platform economy to scale up, also thanks
to legal clarity and less fragmentation in the Single Market.
Conclusion: Bolt will get back to COM with in-writing thoughts on the
third category status and temporary agency work legislation. On this, a
meeting could be possibly organised with Commissioner Schmit.
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Document Outline