Glovo, a subsidiary of Delivery Hero, was fined 79 million euros ($78 million) for allegedly breaking labor regulations. From 2018 through 2021, Spain’s labor ministry said it failed to contribute to social security and make other payments. According to the ministry, it did not recruit its delivery riders under legal contracts.
Glovo announced that it will appeal the ruling. The study was conducted prior to the implementation of a new regulation mandating riders for food delivery companies to be hired. This went into effect in 2021, but some gig-economy workers claim they have yet to have a legal contract.
Gloovo’s unwillingness to provide labor contracts to over 10,600 riders in Spain’s second and third largest cities has resulted in an increase in freelancing. “I’d rather work for a paycheck than have to seek (for orders) for myself,” says Giancarlo, a 25-year-old Italian delivery driver.