- Date
- 31 July 2025
- Country
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Spain
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Geographical scope
- National
- Type
-
Description
In July 2025, Spain's Social Security (an administrative body) demanded €450 million from the delivery platform Glovo. The demand, reported in August 2025, is for unpaid social security contributions and fines. It results from investigations by Spanish labour authorities, which concluded that Glovo's model of using self-employed (autonomous) riders violated Spain's 'Rider Law'.
The €450 million demand is part of a larger potential liability (contingency) estimated by Glovo's parent company, Delivery Hero, to be between €520 million and €860 million. Labour inspections determined that Glovo's modifications to its autonomous model after the 'Rider Law' was introduced were insufficient to comply with the legislation. Glovo must pay or provide a guarantee for the €450 million to be able to continue its legal appeals against the decision.
Delivery Hero's financial report noted that this situation creates "significant uncertainty" about Glovo's ability to continue operating in Spain without further financial support from its parent company.
In response to the regulatory pressure, Glovo completed the hiring of 14,000 riders as salaried employees by June 2025. Separately, Glovo was also fined €106 million by the European Commission in June 2025 for participating in a 'no-poach' agreement with Delivery Hero before the takeover.
The actions by Spanish authorities demonstrate strong enforcement of national labour laws regarding platform worker misclassification. Glovo faces significant financial penalties and is being compelled to fundamentally change its operational model in Spain, shifting from a self-employed rider model to one based on direct employment.
- Keywords
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sector aspects, competition, lobbying
- Actors
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Platform,
Administrative authority
- Sector
-
Transportation and storage
- Platforms
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Delivery Hero,
Glovo
Sources
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Glovo (the Spanish unit of Delivery Hero) has announced that it will hire riders as full-time employees. This shift is intended to mitigate ongoing legal uncertainties and regulatory penalties previously …
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Between 2022 and 2025, the European Commission launched and concluded a major antitrust investigation into food delivery firms Delivery Hero and Glovo. The inquiry focused on suspected cartel behaviour across …