Glovo Considers Exiting Spanish Market

Delivery Hero, nan German genitor institution of nan Spanish transportation level Glovo, is reportedly considering its early successful Spain pursuing important fines and ineligible challenges linked to nan company’s employment practices.

The Spanish Social Security strategy has demanded astir €450 cardinal from Glovo successful unpaid societal information contributions and penalties. These charges originate from nan reclassification of Glovo’s transportation riders, who were antecedently considered self-employed, arsenic labor nether Spain’s “Rider Law” enacted successful 2021. This authorities requires transportation platforms to prosecute riders straight arsenic labor alternatively than engaging them arsenic independent contractors.

The imaginable financial effect connected Glovo could beryllium moreover higher. Estimates propose full liabilities whitethorn scope from €520 cardinal to €860 million, which would see backdated societal information payments, fines, liking and imaginable further claims. The standard of nan penalties has prompted Delivery Hero to reconsider its beingness successful nan Spanish market, citing mounting ineligible and economical pressures. Glovo’s employment exemplary has been arguable for respective years. In 2022, Spain’s Labour Ministry fined nan institution €79 cardinal for failing to categorize transportation riders arsenic labor successful statement pinch nan Rider Law. In January 2023, Glovo received a further €56.7 cardinal good involving astir 8,000 workers for akin violations.

In consequence to these ineligible challenges, Glovo has started transitioning its workforce. By mid-2025, nan institution had offered general employment contracts to complete 14,000 riders successful Spain, moving distant from its erstwhile exemplary of self-employed contractors. Despite these changes, critics reason that immoderate aspects of nan company’s operations still do not afloat align pinch nan intent of nan Rider Law. In summation to nationalist ineligible challenges, Glovo has faced scrutiny astatine nan European level. In June 2025, nan European Commission fined nan institution €329 cardinal for breaching EU antitrust laws, including engaging successful anti-competitive agreements pinch competitors and sharing delicate business information. Glovo’s stock of this good was reported astatine €105.7 million. 

These cumulative fines and regulatory pressures person created a challenging situation for Glovo successful Spain. The institution has taken steps to comply pinch labour legislation, including regularising its workforce and adapting contracts, but nan ongoing ineligible and financial obligations proceed to airs risks to its operations.

Delivery Hero’s information of perchance exiting nan Spanish marketplace reflects nan standard of nan financial and operational unit resulting from these sanctions. The institution has not confirmed immoderate last decision, and nan business remains nether reappraisal arsenic ineligible proceedings and enforcement actions continue. As of August this year, Glovo operates successful a ineligible discourse that requires important adjustment to Spain’s labour and regulatory frameworks. While it has moved toward compliance pinch nan Rider Law and addressed immoderate European Commission concerns, nan fines and ongoing litigation underscore nan important challenges facing platform-based transportation companies successful Spain.