Food delivery services Foodora and Deliveroo are riding a wave of popularity with consumers. But like ride-sharing service company Uber before it, they face a legal challenge over the claim their army of cycle couriers are independent contractors, not employees.
"We think these companies are exploiting ambiguities in the law to underpay these workers and we are going to bring a case to make sure it stops," said Daniel Victory, a lawyer at Maurice Blackburn, who is taking a test case to court.
As a former Deliveroo rider, Alison Millward would strap a big box on her bike to deliver meals to hungry customers on demand.
"I was on one of the better contracts, so I was earning $18 an hour plus $2.50 per delivery. But people who started a couple of months or even weeks after me went down to $16 an hour and you had people on even $14 an hour," she said.
"The rider has to provide [their] own bike as well as helmet and we have to provide all maintenance for those by ourselves.
"On Deliveroos side, they provide the box for the food as well as the uniform, which you have to pay a $220 deposit for."
It is what is known as the the "gig" economy revolution, which supposedly offers convenience to customers and flexibility for workers.
"I think the claim that we're contractors is pretty absurd," Ms Millward said.
"We wear the uniform, basically when you sign up they send you detailed instructions on how to get an ABN [Australian Business Number]. Everyone I know at least isn't working as a courier for other companies."
In Australia, there is a clear cut award for bicycle couriers in Australia of over $22 per hour with penalty rates on Saturdays and Sundays, but they are only applicable if riders are employees.
"It's in unchartered waters and we're going to go out and set the conditions that suit us the best and the conditions that suit us the best are to engage workers like they're independent contractors," said Professor Sarah Kaine, who works in the industrial relations field at UTS.
"Despite riders doing the same job, they're not getting the same pay."
There are also concerns many riders do not realise they are getting a bad deal. Up until three months ago, Deliveroo was hiring riders as young as 16.
"The riders for Deliveroo and Foodora are likely to be short-term migrants, backpackers, the types of workers that unfortunately in Australia we've come to understand don't know their rights very well and often get exploited," Professor Kaine said.
Companies making huge profits 'off the back of these riders'
For these start-ups, it is a lucrative business.
London based Deliveroo recently received "unicorn status", with a valuation well over $US1 billion. Foodora is owned by Deliver Hero, which is valued at about $4 billion.
"Really you'd have to say it's the big companies that are winning. Your Foodoras, your Deliveroos — they are the ones who are really making huge profits literally off the back of these riders," Professor Kaine said.
The ABC contacted both Foodora and Deliveroo to ask them specific questions about their respective business models.
In a statement, Deliveroo said its current minimum rate of pay is $9 per delivery, and riders are required to have insurance.
Foodora said its workers earn $20-$26 an hour on an average night, and can earn more than $30 an hour on a busy one and its workers appreciate the flexible working hours.
But Mr Victory said the challenge "was about whether or not people are paid the minimum rates of pay and entitlements that allow them to live a dignified existence.
"One of the benefits of these riders being employees is that they would all be all covered by an award that gives them minimum rates.
"Because these riders are independent contractors it means these companies can offer different rates for different riders and most of those rates appear to undercut the award rates."
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