Glovo converts freelance riders to employees to comply with Spain's "Rider Law," costing its parent company €100M.

Glovo, a Spanish food delivery app, is converting its freelance riders into employees to comply with new government regulations. This shift, pushed by Delivery Hero, Glovo's German parent company, is to avoid legal issues and fines. The new model will cost Delivery Hero about €100 million in 2025 profits. Spain's "Rider Law" of 2021 requires delivery workers to be recognized as employees, leading to fines for noncompliance totaling €205 million for Glovo.

December 02, 2024
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