The ongoing dispute over Glovo and the so-called rider law has kept tension high for more than a year. Regardless of the branding, the issues that affect Glovo and similar platforms will attract the full force of the law. The second vice president responded in Congress last week, noting that any noncompliant companies will face consequences under the current regulations. The public back-and-forth between the labor minister and the Barcelona-based courier, now under German ownership, has spanned more than ten months. When the rider law was introduced, Glovo chose to maintain its model with freelancers, a path its competitors also pursued at the outset. Yet Díaz, despite previous tough statements, already believed Glovo would honor the rider law and meet its obligations.
In May, the Foreign Investments Board, a 16-member body under the Ministry of Industry and Trade, convened to discuss the implications of Glovo’s operations and its corporate structure. Glovo, headquartered in Poblenou, Barcelona, had completed a key corporate move just before the meeting: a sale to Delivery Hero, the Berlin-based group, finalized at the end of 2021. The German investors valued the firm at about €2.3 billion, reflecting its growth and strategic significance in the delivery sector.
The transaction was anticipated to close in the latter half of 2022, subject to regulatory approvals. Diaz attended as the government outlined the regulatory path, emphasizing the Investment Board’s authority to veto deals that could affect national interests under a 1999 law. The pandemic-era adjustments to that law aimed to prevent foreign capital from acquiring strategic assets at depressed prices, ensuring careful oversight over critical businesses.
The Labor Ministry formally requested the Investment Board pause the sale until Berlin could provide assurances that Glovo would comply with the rider act. Many delivery workers viewed this as a direct test of Díaz’s high-priority labor reforms. Government sources stated that Delivery Hero formally committed, in writing, to support Glovo’s compliance with the rider act, though Glovo itself declined to comment when queried by El Periódico de Catalunya. The sale had also drawn attention in the United States, with the council of ministers reportedly approving the transaction on May 31. The press outlet notes that Glovo has kept to its stance while remaining silent publicly.
The industry watches closely because a resolution in Glovo’s favor could pressure rivals to adjust their own practices. Nearly 80 percent of Glovo’s shares now sit under Delivery Hero’s control. Competitors such as Just Eat and Uber Eats have already started revising their operating models to align with regulatory demands. In Spain, the move toward freelance-based labor has incurred significant scrutiny, and many deliveries workers found themselves at the center of ongoing investigations. Courtney Tims, the managing director of Uber Eats Spain, once asked if Glovo’s approach could inspire a broader shift toward freelance arrangements to create a level playing field.
Delivery Hero has faced the risk of penalties should audits reveal noncompliance. Authorities have launched macro inspections across several Spanish cities to document current labor practices among Glovo’s distributors and to determine whether some workers have operated as bogus self-employed contractors. The Supreme Court’s 2020 rulings still influence the interpretation of independent contractor status in these cases, shaping how provincial inspections are resolved.
The Social Security department could claim substantial sums if past contributions have not been properly accounted for. The fleet of couriers, which has grown substantially since Glovo’s early years, dwarfs the company’s own initial staffing. From its inception to December 2021, the company registered thousands of delivery personnel who had previously worked as self-employed contractors. The accumulated debt, estimated in the tens of millions of euros, remains a moving target as audits continue to unfold. In short, the ongoing investigations hold implications for the broader gig economy, where labor classifications and benefits remain hotly contested topics.
The case illustrates how labor regulation, foreign investment scrutiny, and corporate strategy intersect in modern gig-economy markets. It also signals that government authorities remain committed to ensuring worker protections while balancing the realities of global capital and cross-border ownership. The evolving narrative around Glovo and the rider law continues to influence how platform-based businesses shape their employment models, with potential ripple effects across Spain, Europe, and beyond. As regulators review past practices and future commitments, the industry watches for concrete actions that demonstrate a genuine commitment to compliant, fair work arrangements for riders and couriers.
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Note: This summary reflects developments up to the present, with attribution to public records and reporting from regional outlets covering the Glovo case and related labor law enforcement activities. Acknowledgments are given to sources reporting on regulatory actions, ministerial statements, and corporate disclosures relevant to the rider act and cross-border ownership scenarios.