Algorithmic Management in the Food Delivery Sector - A Contested Terrain? Evidence from a Firm Level Case Study on Algorithmic Management and Co-Determination

Abstract

Forms of algorithmic management (AM) play an essential role in organizing food delivery work by deploying AI-based systems for coordinating driver routes. Given the risks of precarity and threats posed by AM that are typically related to (migrant) platform work, the question arises to what extent structures of co-determination are able to positively shape this type of work and the technologies involved. Based on an intense case-study in a large food delivery company, this paper is guided by three questions: (1) How is algorithm-based management and control used by the company? (2) How is it perceived by the couriers, also in relation to other aspects of their work? (3) What are the works council's priorities, strategies, and achievements regarding co-determination practices? Contrary to the prevalent perception in the literature on the subject of AM, our analysis shows that human agency is still pivotal when algorithm-based systems are used to manage work processes. While data- and AM-related issues do not represent a central area of conflict, we find that co-determination rights in this domain can translate into a powerful bargaining resource of the works council with regard to the companies' digital business model. Our study also shows that algorithmic management poses problems of non-transparency and information asymmetry, which calls for new forms and procedures of co-determination.