🚴 Big Change for Glovo Riders
Glovo, owned by Delivery Hero, is transitioning 15,000 riders in Spain from freelance to salaried positions. This shift, affecting over 900 cities, comes in response to Spain’s 2021 Rider Law, aimed at protecting app-based workers' rights. Glovo’s decision is significant, considering years of resistance to the employment model.
💼 Legal and Financial Challenges
The transition follows years of legal troubles, including fines for labor law violations. Glovo’s founder, Oscar Pierre, faces trial for alleged rights violations. The parent company, Delivery Hero, expects a $100M drop in EBITDA in 2025, alongside increased contingency costs of $480M to $840M in 2024.
🎉 Government and Union Reactions
Spain's Minister of Labor, Yolanda Díaz, praised the move as a step toward justice, celebrating it as the largest worker regularization in Spanish history. Unions remain cautious, questioning Glovo’s implementation plans. RidersXDerechos urged skepticism until all riders are officially employed.
📈 Industry Implications
Glovo’s switch may reshape Spain's delivery market. Just Eat, with 2,500 salaried riders, is the only competitor already using this model. Uber Eats operates a hybrid model with subcontracted fleets. Glovo’s decision sets a new standard, aligning with global labor trends in the gig economy.
Will this reshape the gig economy?
