Regardless of their name, Glovo, these companies that do not comply with the legislation will bear the weight of the law. Peak workedas we do.” This is how the second vice president replied last week, Yolanda Diaz, to a question an MP asked him in Congress. The pulse between the Minister of Labor and the home delivery company founded in Barcelona and recently acquired by German giant Delivery Hero has been going on for more than 10 months, unlike when the ‘Equestrian Law’ came into effect and Glovo decided. other companies in the sector will continue to distribute through freelancers. But despite the toughness he had made public in Congress last week, Díaz already knew at the time that Glovo was guaranteed to abide by the ‘Rider law’.
Met last May 19 Foreign Investments Board, a body made up of 16 representatives from different ministries under the Ministry of Industry and Trade, responsible for, among others, preparing perceptual reports on the sales of Spanish companies to foreign buyers. And he said that last May 19, the Board met to talk about Glovo and the operation of this company, headquartered in Poblenou, Barcelona, which he formalized a few minutes before the meeting. New Year’s Eve 2021: Sale to Berlin (Germany) based Delivery Hero. What raises the valuation of the firm in the eyes of the Germans €2.3 billion.
“The transaction is expected to close in the coming days” second half of 2022Read the German announcement of the purchase, subject to the approval of the regulatory authorities”. And that Yolanda Díaz came along. The Investment Board has the capacity to veto such transactions for the sake of a 1999 law, and it was temporarily reformulated during the pandemic to prevent foreign capital from acquiring strategic companies taking advantage of the fact that their prices or assets were falling.
The Ministry of Labor has made a formal request to the Foreign Investments Board to paralyze the sale of Glovo until it receives assurances from the Germans that they will comply with the ‘Rider law’. Many of the delivery actors saw it as a direct challenge to one of Diaz’s star laws. “Delivery Hero has formalized in writing a responsible statement from its Glovo shareholder position that it will advocate compliance with the Rider Act,” government sources said. The same sources add that the operation was approved in the USA. minister council of the 31 May. When asked by EL PERIÓDICO DE CATALUNYA, a media belonging to the Prensa Ibérica group, such as this newspaper, Glovo refused to comment on this.
The business urgently needs to put an end to its pulse with Glovo as it can be costly for the company. Now almost 80% of its shareholders are controlled by Delivery Hero. Well, Glovo’s rivals—mainly just eat Y Uber Eats-Changing its working models to comply with regulations, Díaz has been pressing Díaz to do so in recent months. Given the lower labor costs and ability to attract more ‘riders’ of working with freelancers, the yellow backpacker firm is gaining market share at the expense of its competitors these months. “Should we follow the example of Glovo and work with freelancers to compete on a level playing field?” Courtney Tims, managing director of Uber Eats Spain, asked the second vice president two months ago. she asked.
Written commitment of the Delivery Hero kept by the Worker, the new German managers millionaire fines It could drop to the company in the coming months. alright labor inspection It has a macro operation in various Spanish cities where it collects information on current Glovo worker practices. To document whether its distributors continue to operate fake freelanceras already ruled Supreme Court in 2020. And since Glovo’s operations in Spain, each of the province-wide resolved inspections has prevailed.
The final amount Social Security can claim from the delivery company for unpaid contributions in recent years could be in the tens of millions, given the size of its current fleet of suppliers, which is much larger than its own. had in its early years. Since it started its operations and until December 2021, Glovo had to register as an employee 11,358 delivery people who had operated as a bogus self-employed person. A debt was worth saving 16.2 million €now it can be reproduced after new Audit failures.