Overview

• Glovo, owned by Berlin-based Delivery Hero, announced it will transition its Spanish delivery riders from freelance to employee status to address ongoing legal challenges.
• The move follows Spain's 2021 'Rider Law,' which mandates app-based delivery workers be treated as employees rather than independent contractors.
• Glovo had previously faced fines totaling €205 million for labor law violations, including failing to hire riders as employees and employing undocumented workers.
• The operational shift is expected to cost Delivery Hero €100 million in earnings by 2025 but will provide riders with benefits such as sick leave and job protections.
• The announcement coincides with Glovo's CEO being summoned to court and reflects broader European efforts to regulate gig economy platforms.