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