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Glovo, a Spanish delivery app owned by Germany's Delivery Hero, has bowed to pressure over labor rights in its home market. The company announced Monday it will hire around 15,000 riders — most of whom are currently “self-employed” according to Glovo. Per Reuters, the company also warned of a €100 million hit to earnings.
A 2021 Spanish labor reform recognized riders gigging for delivery platforms as employees. However, Glovo has continued to operate with most riders off its books, using subcontractors in a bid to swerve the requirement. That era looks to be over. In a statement, Glovo said it wants “to avoid further legal uncertainties.”
The company has already faced multiple fines for labor infractions predating the 2021 riders' law. On top of that, CEO and co-founder Oscar Pierre is due in court this week over alleged breaches of the latter. It's also facing a competition lawsuit from competitor Just Eat, which is seeking €295 million in damages.
In a post on X about Glovo's change of heart, Spanish labor minister, Yolanda Díaz, said: “Companies were not used to [being] told no. Glovo thought it could act outside the law.”
This article originally appeared on TechCrunch at https://techcrunch.com/2024/12/03/delivery-app-glovo-bends-to-spains-riders-law-will-hire-thousands-of-couriers/