In June 2025, the European Commission fined 329 million euros for violating EU antitrust law. Photo Credit: Predrag Milosevic/Shutterstock
Delivery Hero, the German parent company of Spanish delivery platform Glovo, reaffirmed his commitment to operating in Spain despite fines and regulatory challenges associated with employment practices.
The company has issued a clarification following a recent report suggesting it could rethink its future in the Spanish market. The streaming hero emphasized that such claims are misleading and noted that he is fully committed to Glovo’s Spanish business. Clarification was made in response to the interpretation of the “Concerns” clause contained in the distribution hero’s six-month financial report. The company noted that the wording in this clause is not new and already exists in its 2024 annual report. He emphasized that the clause does not represent a change in strategy or an intention to withdraw from Spain.
Spain has been a challenging market for food delivery platforms since the introduction of the “rider law” in 2021, requiring companies to hire delivery riders as employees rather than as independent contractors. Glovo faces several important penalties for failing to fully comply with the law. In 2022, the Spanish Ministry of Labor fined the company 79 million euros, followed by an additional 56.7 million euros penalty in January 2023, involving around 8,000 riders.
Spain’s social security system is seeking around 450 million euros from Glovo with outstanding contributions and penalties related to previous employment models. Some estimates suggest that our potential liabilities could range between 520 million and 860 million euros, when fines, payments and interest are taken into account. At the European level, Glovo was fined 329 million euros in June 2025 by the European Commission for violating EU competition rules, with Glovo itself in charge of a total of 105.7 million euros. In response to these challenges, Glovo has taken steps to transition the workforce. By mid-2025, the company had provided formal employment contracts to more than 14,000 riders in Spain. Critics have argued that some practices contradict the intentions of Rider Act, but streaming heroes argue that the company has made significant advances.
A delivery hero spokesman said:
“We’re making great strides in Spain. We’ve done a lot of work moving riders to an employment-based model. Of course there are costs associated with that and the previous engagement model, but we’re doing this. We’re committed to running glory in Spain, as the results of H1 show.”
The combination of fines, legal procedures and operational adjustments has created a challenging situation for a platform-based delivery company in Spain. However, the streaming hero claims it has adapted and that Glovo continues to function as part of the domestic long-term strategy. As of August 2025, Glovo continues to operate in Spain under a legal and regulatory framework that requires substantial compliance measures. Delivery Hero emphasizes that there is no plan to withdraw from the Spanish market despite costs associated with adapting the business model.
