the home delivery company, has decided to make changes to its billing system, becoming something like a mere intermediary between private customers and the supermarkets and restaurants with which it operates, as revealed exclusively . The decision would have already been officially communicated to the partners by email.
This change in its internal functioning implies that, as an intermediary platform, Glovo will only invoice the access fee. In this way the distribution fee will be invoiced by the riders. The delivery company thus begins to present itself as a service that allows the customer to connect with the establishment in which they want to order something, nothing more. So, quit the delivery service that occurs after the customer places his order on the platform. This would imply that the supermarkets and chains would become legally responsible for the distributors who distribute their orders.
Paradigm change in Glovo a few months after the Rider Law is one year old
On August 12, 2021, it came into force, after having given three months of margin to companies that have delivery men to adapt and regulate their situation in accordance with this new legal framework. With the advent of this law, the distributors hired by the platforms must appear as employeesinstead of as self-employed, in order to avoid using the figure of the “false self-employed”.
Likewise, this law contemplates the Right to information, according to which these workers can know the algorithms that affect their working conditions and the access and maintenance of their employment. This is an important point considering the weight that these algorithms have on the work of delivery people, since they manage shipments, who distributes according to their location, routes, etc.
The position of the delivery company before the Rider Law
The reactions of the different companies in the sector were diverse, going through acceptance, criticism and even more radical decisions such as Deliveroo’s to leave the Spanish market, although their official statements spoke of other reasons.
In the case of GlovoI know announced the hiring of 2,000 delivery men, a number that accounted for just under a fifth of its fleet at the time. In addition, the delivery company tried to justify the hiring of distributors who appeared as self-employed, to maintain this model in the rest of its staff, which brought with it a complaint by the CCOO.
Glovo announces losses worth 474 million euros
The news of Glovo’s paradigm shift comes in an already turbulent context for the company, since its 2021 results were announced a few days ago. The platform closed its financial year in the red and presented losses of 474 million euroswell above the 83 million it lost in 2020. Despite the increase in revenue in 2021, which went from almost 360 million euros to 580 million, this was not enough for the company to present positive results.
The possibility that, among these losses, the costs of the legal issues that Glovo has been forced to face lately, have been included, is very high. Among these would be precisely the employment situation of its delivery men, an issue that has become the stone in Glovo’s shoe, which has almost 30 inspection investigations opened in Spain.
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