Delivery Hero expresses concerns about Glovo's future in Spain.

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Aug 28 2025

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Source: Reuters

Delivery Hero's Concerns: Delivery Hero has expressed doubts about the future of its Spanish subsidiary Glovo due to potential social security charges and penalties that could jeopardize its operations in Spain.
Legislation Impact: Spain's gig-economy worker rights legislation, enacted in 2021, requires food delivery platforms to employ riders under formal contracts, leading to fines for Glovo for non-compliance.
Financial Consequences: The transition of freelance riders to full-time employees last year cost Delivery Hero approximately 100 million euros, contributing to a decline in its share price.
Uncertain Future for Glovo: Delivery Hero's earnings report indicates significant uncertainty regarding Glovo's ability to operate sustainably in Spain, with potential liabilities ranging from 562 million euros to 923 million euros.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.