Spanish Food Delivery App Glovo Moves Towards Full-Time Employment

In a significant shift towards labor rights, Spanish food delivery app Glovo has announced its decision to make its drivers full-time employees. This move comes after the company faced regulatory pressure and legal challenges in the country, which has become a pioneer in gig economy regulations. The change in employment status will affect around 15,000 delivery riders across Spain.

Glovo, owned by German delivery company Delivery Hero, has decided to change its operational model in Spain to an employment-based one. This decision follows a series of fines and investigations totaling over €205 million for not providing labor contracts to its riders. The shift is expected to impact Glovo's adjusted earnings before interest, taxes, depreciation, and amortization (adj. EBITDA) by €100 million in 2025, primarily due to increased social security contributions and taxes.



Yolanda Díaz, Spain's Labor Minister and Vice-President, welcomed the decision, stating that it was a victory for democracy and a significant step towards regularizing the employment status of thousands of gig workers. The move is expected to generate additional income for the Spanish government, with an estimated €267 million in increased social security contributions.

This change in employment status will have several implications for Glovo, its riders, and the Spanish gig economy. While the shift may lead to improved job security and benefits for delivery riders, it may also result in higher labor costs and potentially higher delivery fees. Glovo's competitors, such as Deliveroo and Uber Eats, have yet to follow suit, which could provide a strategic advantage for Glovo in terms of rider loyalty and reduced labor disputes. However, it may also disadvantage Glovo against competitors that maintain a gig worker model.



In conclusion, Glovo's decision to move towards full-time employment for its delivery riders in Spain is a significant step in acknowledging the regulatory changes and addressing the legal challenges faced by the company. The shift will impact Glovo's cost structure and profitability, as well as the broader gig economy landscape in Spain. As other European countries consider similar regulations, Glovo's proactive approach may set a precedent for the gig economy in the region.