Glovo to Hire 15,000 Riders as Employees

Glovo, the Spanish delivery app owned by Delivery Hero, announced it will transition approximately 15,000 riders from self-employed status to full-time employees, aiming to comply with Spain's labor laws and avoid legal uncertainties. This decision follows intense scrutiny and multiple fines for not adhering to the 2021 Riders Law, which recognizes gig workers as employees. The shift is expected to impact Glovo's earnings by around €100 million, leading to a nearly 10% drop in Delivery Hero's shares. Spanish Labor Minister Yolanda Díaz praised the decision, emphasizing that no company is above the law. However, there are concerns that not all current workers will be hired, as the implementation of the new model is set to take weeks. Additionally, Glovo's CEO Oscar Pierre is facing court proceedings for alleged violations of labor rights, highlighting the company's ongoing legal challenges.