Glovo uses a price ‘modifier’ that prioritizes ‘riders’ who lower their rates

The reactions in the hospitality sector to the change that Glovo has unilaterally introduced in the billing system for the services provided by its ‘riders’ to restaurants continue to happen.

Organized catering entrepreneurs ensure that technology is used mainly for small or medium-sized chains, with less pressure capacity than other major brands in the industry.

One of the executives affected by the measure accuses Glovo of acting “in an arrogant manner, assuming that we do not have room for negotiation with them regarding the new conditions that they impose” on clients who could incur civil liabilities in the event of an accident. of one of these false self-employed workers who have not been hired and who, furthermore, do not have real freedom to set their rates.

In this sense, as has learned, the ‘riders’ have at their disposal in the Glovo Couriers app a price variation system on the initial standard set by the technology company and which they call a ‘modifier’. With this tool, dealers can offer to deliver by setting their rate 30% above or below that initially set. Then it is the Glovo algorithm that establishes which autonomous the service is assigned to. “This system, as was to be expected, ends up rewarding those dealers who price their services at a lower price with more orders,” recalls this businessman.

“This is a fraudulent way to comply with the ‘Rider Law’ that makes many of these self-employed drivers earn even less money than before it came into force. It is not understood that the Ministry of Labor has not yet taken action on this matter”, says the businessman.

See also  Social Security issues a notice to domestic workers who work few hours

working silence

This ministry, integrated into the committee with the power to thwart the sale of the Spanish unicorn to the German operator Delivery Hero, remains silent regarding the accusations of fraud regarding Glovo’s practices. In the case of Uber Eats, these were formalized in a letter sent to its owner, Vice President Yolanda Díaz, last March. The takeover of the German company, announced at the beginning of the year, should receive the approval of the Spanish authorities in the near future after having committed in writing to comply with the ‘Rider Law’.

Other voices in the sector, beyond the controversy that has arisen between the different delivery and restaurant operators, recall that the general interest of the State should be aimed at not endangering an activity that has proven essential for an industry with so much economic weight. like hospitality. Likewise, they demand from the authorities the flexibility of the market so that the regulations adapt to a new reality arising from an activity such as home delivery.

Loading Facebook Comments ...
Loading Disqus Comments ...