The delivery service Glovo is on the verge of leaving the Spanish market due to large fines and government demands to change the status of its couriers, which could result in significant financial losses for the company.
Glovo’s owner, the German company Delivery Hero, has reported serious risks to the continued operation of its Spanish division. As of the end of July, Glovo is required to pay €450 million in fines and unpaid social contributions. These amounts are related to Spanish authorities’ demands to recognize couriers not as self-employed, but as official employees, as required by the so-called ‘rider law.’
In its report for the first quarter of 2025, Delivery Hero notes that since July the company has begun to receive official decisions on the reclassification of couriers. If all requirements are fully met, Glovo will not be able to cover all payments without additional financial support from its parent company. Delivery Hero emphasizes that under these circumstances, Glovo’s future in Spain remains uncertain.
The total potential liabilities may be even higher. According to the company’s estimates, by the end of June 2025 the risks related to the reclassification of couriers could amount to between €562 million and €923 million. This includes not only fines and contributions, but also potential tax claims.
If Spanish courts ultimately recognize couriers as employees, Glovo may face additional obligations to pay social security contributions, penalties, and taxes totaling up to 860 million euros. Despite this, Delivery Hero’s management continues to insist that Glovo couriers are self-employed and intends to defend this position in all court instances. The company plans to comply with payment requirements only in the second half of 2025.
Delivery Hero notes that the issue of determining platform workers’ status remains contentious not only in Spain but also in several other countries in Europe and Latin America. In these regions, local authorities and the couriers themselves are challenging the business model, demanding recognition as employees and the provision of corresponding social benefits.
The company does not account for potential payments in its financial statements, considering the likelihood of a full reclassification of couriers to be low. In the event of legal proceedings, Delivery Hero intends to defend its position.
Glovo has previously faced lawsuits in Spain. For example, the service Just Eat demanded 295 million euros from Glovo for allegedly illegal use of self-employed couriers. However, in July 2024, a Barcelona court dismissed the claim, ruling that Glovo acted within the law and that its business model differs from its competitors.
The court ruling noted that if Glovo employed only regular staff, delivery costs for customers would be comparable to those of Just Eat. Delivery Hero declined to disclose details of the case, citing concerns that it could harm their position in possible future proceedings.
Despite legal challenges, Delivery Hero continues to grow its revenue. In the first half of 2025, the company earned 7.19 billion euros, up 18.9% compared to the same period last year. The most significant growth was seen in its divisions in Asia, the Middle East and North Africa, as well as in Europe and the Americas.
Nevertheless, due to the complex situation in Spain and other countries, the company has lowered its profit forecast for 2025. Adjusted EBITDA is expected to reach between 900 and 940 million euros, which is below previous expectations. The cash flow forecast was also reduced by 80 million euros, down to 120 million. However, revenue is still expected to grow by 22–24%.
The situation around Glovo in Spain remains tense. In the coming months, the company and its parent will have to make decisions that will determine the future of the service in one of Europe’s key markets.
