Foodora's delivery riders have spoken out about an "oppressive" policy which pits them against each other in a "survival of the fittest" contest.

Key points: Foodora is defending two lawsuits, basically alleging its delivery riders are being exploited

Foodora is defending two lawsuits, basically alleging its delivery riders are being exploited The key to winning or losing the cases is how much control Foodora has over its riders

The key to winning or losing the cases is how much control Foodora has over its riders The company's "Batch" policy ranks its riders in a competitive hierarchy

The company's "Batch" policy ranks its riders in a competitive hierarchy The best performers ("Batch 1") are allowed to pick their shifts earlier than everyone else

The best performers ("Batch 1") are allowed to pick their shifts earlier than everyone else "Batches 4 and 6" are the "worst" performers, and punished with a two-day delay

They also claim the "flexible hours", "competitive rates" and "best working values" promoted on the food delivery company's website are untrue.

The company is currently embroiled in two lawsuits which could have severe consequences for Uber, Deliveroo and its competitors with similar business models — if Foodora loses even one of the cases.

The first case was launched by former rider Josh Klooger, who alleged he was unfairly dismissed for speaking out about the company's worsening pay and conditions.

Mr Klooger said, as one of Foodora's earliest riders, he was paid $14 per hour plus $5 per delivery (two years ago) — but has seen payment drop to $7 per delivery with no hourly wage for newer riders.

The other case is the Fair Work Ombudsman's test case against Foodora, accusing the company of sham contracting.

Basically, that means misrepresenting its employees as independent contractors (who are their own bosses, running their own businesses) — to avoid paying minimum wage, annual leave, sick leave and superannuation.

Foodora's hunger games

While many businesses reward their best performers with gift cards, time off work, or even pay rises, Foodora prefers to "keep them hungry", according to one rider who asked to remain anonymous.

The ABC has spoken to several riders, and obtained internal Foodora documents which reveal the company's policy of ranking riders in a hierarchy, or "batches", every 14 days.

There will always be losers in this Darwinian system.

Foodora's batch system rewards its best riders by giving them first pick of shifts, while punishing its bottom-performers. ( ABC )

It rewards the best riders (the top 10 per cent) with "Batch 1" status, allowing them to pick shifts before everyone else. They get up to a 48-hour head start to choose when, where and as many hours as they would like to work.

Climbing to the top requires riders to "work like a dog" every day, and "ride faster than everyone else", said Melbourne-based Foodora rider Icce Mejia.

Foodora punishes "Batches 4 and 6" riders — the "inactive" or "worst" 40 per cent — by making them wait two days before they are allowed to choose their shifts.

These bottom-performers are more likely to get shifts at far away locations, and during times which are not necessarily the most convenient for them.

The middle-of-the-road riders ("Batches 2 and 3", who are in the 11th to 60th percentile) can choose their shifts one day before those who are least favoured by the company.

There is no "Batch 5" in Foodora's hierarchy.

So in a batch of 1,000 delivery riders, there will always be 400 that get penalised each fortnight.

Foodora gives priority to riders who work on weekends and deliver more than everyone else. ( ABC )

Punished for getting hurt

Mr Mejia told the ABC it did not take much to slip down Foodora's hierarchy.

Essentially, the delivery riders who want to attain "Batch 1" status need to compete on these criteria:

Icce Mejia is a Foodora rider who was demoted to "Batch 6" after breaking his arm in the course of his duties. ( Supplied )

Work on Friday, Saturday and Sunday evenings, after 7:00pm (25pc weighting)

Work on Friday, Saturday and Sunday evenings, after 7:00pm (25pc weighting) Deliver more food per hour than other riders "working in the same area" at the "same time" (40pc weighting)

Deliver more food per hour than other riders "working in the same area" at the "same time" (40pc weighting) Make sure they don't miss any shifts (25pc)

Make sure they don't miss any shifts (25pc) Not log-in to the Foodora app more than 10 minutes late (5pc)

Not log-in to the Foodora app more than 10 minutes late (5pc) Work more "average weekly hours" than everyone else (5pc)

The bottom batches consist of "people who have other jobs, other activities, or been on vacation for a long period of time".

"It doesn't matter if you were sick, had an accident, or just decided to take a vacation, you'll fall to the bottom of the batch system," Mr Mejia said.

"I was always in 'Batch 1' as my only activity was working and doing deliveries."

At his peak, he worked more than 60 hours per week for Foodora, until he suffered a serious injury on the job.

While delivering for the company in December, Mr Mejia was riding rapidly when a car door opened in front of him, sending him flying off his bike.

The Foodora rider broke his left wrist, after landing hard on a busy Melbourne road.

He said Foodora refused to compensate him, and his manager told him: "You don't work for us. You're an independent contractor, so you're responsible for your own medical bills."

"I felt betrayed and under-appreciated — that all the time I'd been working for the company was useless," he said.

Mr Mejia noticed that he had been downgraded to "Batch 6" after taking a one-month holiday, and was unable to choose shifts on the Foodora app anymore due to his "inactive" status.

After months of intense work and long hours, he was eventually allowed back into the higher batches.

Ramifications for the gig economy

The ABC has asked Foodora to comment on the rationale of its competitive "batch" policy.

But the company's spokesperson said: "As the matters are currently before the courts, it is not appropriate for Foodora to make any comment at this time."

This policy is one of the "matters" which will be relied on as evidence — to argue that the company exercises a high degree of control over its riders, and should therefore entitle them to minimum wage and other employee entitlements.

Foodora's entire business model is under threat if it fails to refute these arguments convincingly. What is at stake, if it loses, is an expensive bill for backpay, annual leave, sick leave and superannuation.

Competitors like Deliveroo and Uber Eats are no doubt watching this case closely as they have similar business models — which rely on bicycle couriers signing contracts which state they are not employees, but instead run their own businesses.

On a wider scale, it may embolden other gig economy workers like Uber, Taxify and Ola drivers (who are also hired as independent contractors) to also demand more.

For consumers, they may need to cough up for more expensive food deliveries and pricier rideshare trips — if all those companies are still in business.