Glovo, a Spanish delivery app that Germany’s Delivery Hero owns, has yielded to pressure regarding labor rights in its domestic market
On Monday, the organization disclosed that it intends to recruit approximately 15,000 riders, most of whom are presently classified as “self-employed” by Glovo.
According to Reuters, The company also warned that earnings would be reduced by €100 million.
In 2021, a Spanish labor reform recognized couriers who gig for delivery platforms as employees.
Nevertheless, Glovo has continued to operate with the majority of riders off its records, employing subcontractors to circumvent the requirement.
It appears that the epoch in question has concluded. Glovo stated in a statement that it aims to “avoid any additional legal uncertainties.”
The company has already been subjected to numerous penalties for labor infractions that predate the 2021 Riders Law.
Additionally, CEO and co-founder Oscar Pierre is scheduled to appear in court this week regarding purported violations of the latter.
It is also contending with a competition lawsuit from its competitor, Just Eat, which is seeking €295 million in damages.
Spanish labor minister Yolanda Díaz stated in a post on X regarding Glovo’s change of heart, “Companies were not accustomed to being told ‘no.'” Glovo believed that it could operate beyond the confines of the law.
