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 them are currently “self employed” according to Glovo. Per Reuters, the company also warned of a €100 million hit to earnings.
A 2021 Spanish labour 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 pre-dating 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, too. 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 be told ‘no’. Glovo thought it could act outside the law.”
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