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Glovoa Spanish delivery app owned by German company Delivery Hero, has succumbed to pressure over labor rights in its home market. The company announced Monday that it will hire about 15,000 riders — most of whom are currently “self-employed,” according to Glovo. per ReutersThe company also warned that its profits would fall by 100 million euros.
The 2021 Spanish labor reform recognized riders who work on delivery platforms as employees. However, Glovo continued to operate with most passengers not on its books, using subcontractors in an attempt to distort requirements. It seems that that era is over. Glovo said in a statement that it wanted to “avoid further legal uncertainties.”
The company has already faced multiple fines for labor violations dating back to before the 2021 Riders Act. Furthermore, CEO and co-founder Oscar Pierre is scheduled to appear in court this week for the latter’s alleged violations as well. It is also facing a competition lawsuit from rival Just Eat It is demanding compensation amounting to 295 million euros.
In a Post on X about Glovo’s change of heartSpanish Labor Minister Yolanda Díaz said: “It was not common for companies to be told ‘no’. Glovo believed they could act outside the law.”
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