Globo, the Spanish delivery app owned by Germany's Delivery Hero, has bowed to pressure over worker rights in its home market. The company announced on Monday that it would hire about 15,000 passengers, most of whom are now “self-employed,” according to Globo. The company warned of a 100 million euro hit to its revenue, according to Reuters.
Spain's 2021 labor reform recognized riders working on delivery platforms as employees. But Globo has tried to circumvent the requirements by using subcontractors and keeping most passengers off its books. Those days seem to be over. Globo said in a statement that it “wants to avoid further legal uncertainty.”
The company already faced multiple fines for labor violations before the 2021 Rider Act went into effect. In addition, CEO and co-founder Oscar Pierre is also scheduled to appear in court this week on charges of the latter violation. A competition lawsuit has also been filed by competitor Just Eat, seeking damages of 295 million euros.
In a post on X about Globo's change of heart, Spain's Labor Minister Yolanda Díaz said, “Companies are not used to being told 'no'. Globo thought they could act outside the law.”