Our gig economy project update, August 2024

You probably already know that Better Way Alliance member Jess Carpinone (co-owner of Bread By Us) has been on a mission to develop a delivery system that not only meets the economic needs of her business but also prioritizes the safety and well-being of the workers involved. It’s a challenging endeavor, but she’s been pondering an intriguing idea: What if small business owners with similar delivery requirements pooled their resources? By coming together, they could create a system that meaningfully employs a small number of drivers, ensuring fair wages and better job security. 

We approached the City of Ottawa’s Economic Development team who agreed to support Jess’s idea with a small pilot project. The City of Ottawa is enthusiastic about the opportunity to test a new model that can elevate low-wage earners by offering them greater economic opportunities and upward mobility. And we share their excitement! It’s inspiring to think about the positive ripple effects this initiative could have on our community, transforming not just businesses, but lives.

What’s happened since our inaugural post

Jess has been incredibly busy since our last update. She’s spoken to several business owners who have either set up cooperatives or are currently part of one. These conversations have provided valuable insights into the cooperative model and its potential for success. Jess has also consulted with a cooperative advisor and a social impact business advisor to refine her approach and ensure it aligns with best practices.

In addition to these discussions, Jess has found a vehicle that will be leased to the cooperative by its owner. This is a crucial step in setting up the logistics for the delivery system. She has also explored various business models, including an owner cooperative (comprising shop owners) and a multi-stakeholder cooperative (including both drivers and shop owners).

Why a cooperative? The principles behind cooperatives resonate deeply with the motivation for starting Fair Path Delivery. Cooperatives aren’t founded to maximize profit; their core mission is to serve their members well. They are controlled democratically, ensuring that all members have a say in the decision-making process. Jess found that consumer co-ops were too broad and worker co-ops experienced too much turnover, making the multi-stakeholder model a potentially perfect fit. Excitingly, Jess has also found a potential business partner for the cooperative.

So, what is important to have in a new business model for delivery drivers?

One key element that has emerged is the need for adequate buy-in from the organizational side. This ensures that setting up the delivery system isn’t just another task added to an already busy schedule, like running the bakery. Trust is mandatory factor; the new delivery organization needs to have the autonomy to make decisions. It’s even better if the business model integrates trust into its core, like a cooperative does, which requires democratic decision-making.

Time is also essential. Potential business owners need sufficient time to make decisions based on future projections, not just current sales volumes. This forward-thinking approach will help ensure the sustainability and success of the new delivery system.

Going forward, we’re mulling over a few questions…

We’re currently pondering several important questions. Is a worker or multi-stakeholder cooperative the best choice? How would other business owners lease a vehicle if their business partner doesn’t own one? How much time do business owners need to evaluate a decision about entering into this kind of new enterprise, and what education about cooperatives do they require?

Additionally, we’re considering what criteria we can share with other business owners to help them select suitable business partners for their cooperative. What other guidance would be helpful for them to set up a project themselves?

Jess has about a billion others you can read about here!

Contact us if you have an opinion on this or anything to share to help us along on this journezy.

Our next steps

Looking ahead, potential business partners need to consider their future forecasts and work with Bread By Us to determine if their delivery volumes will complement each other. They might also need to involve additional business owners in the project.

We’ll need to register the business and figure out the logistics of the vehicle leasing. It’s important to allow time for the vehicle owner (and business partner!) to work with their accountant to ensure the lease is properly accounted for. We’ll also draft a business plan and specifications for the logistics software needed for the delivery system.

Developing a job description for the driver is another important step, ensuring we’re ready to hire when the time comes. Finally, we’ll apply for more funding for the new enterprise to procure the necessary logistics software and hire the driver.

As we move forward, the support from the City of Ottawa and the collective effort of like-minded business owners is necessary. Together, we can build a delivery system that offers fair wages, job security, and a better future for all involved. This pilot project is just the beginning, and with continued collaboration, we can pave the way for more equitable and impactful business practices.

Thanks for following along on this journey! Contact us if you have any insight that would be helpful to setting up Fair Path Delivery, have a question on gig-work, or an opportunity to collaborate.