Glovo’s attempts to adapt to the ‘Rider Law’ and prevent the Executive from frustrating its acquisition by the German Delivery Hero have caused deep discomfort in the Spanish organized restaurant sector.
The reason is none other than the platform’s attempt to change almost without warning its traditional billing system to restaurant chains, which register the highest volume of orders in the application each month. If they receive one or two invoices per month from Glovo, the brands would receive an invoice for each distribution made by the riders.
In its attempt to comply with the requirements of the ‘Rider Law’, assures a businessman from the organized restoration sector, Glovo would be causing a serious operational setback to companies with a large number of restaurants with delivery service that would now be forced to modify their order management and billing systems.
“Until now,” he says, “we received a fortnightly invoice with what was distributed from each location, which included the Glovo commission and the promotions that were active at all times. Now, in addition, they want us to manage the invoices of some distributors with whom we have not contracted services when in a single restaurant we can have more than 400 weekly orders”.
From another of the main restaurant groups in the country, they assure that the initiative of the platform is an attempt to transfer to their clients possible labor risks such as those derived from non-payments or accidents, which also generates an administrative management problem that, in some cases, could lead to having to resize templates.
Via email
The news reached them by email a few weeks ago, through a newsletter to which had access, in which Glovo explained its new billing system through a guide in infographic format on “Financial Education” . In it, the distribution platform explains: “You will receive as many invoices as orders you have made with Glovo by the distributors. In addition, every fortnight you will receive an invoice along with the balance of payments by Glovo.” And in case it is not clear, give an example: “If you make 20 orders in a fortnight, you will receive 21 invoices: 20 from the delivery men and 1 from Glovo.”
Without giving further explanations about the reason for the unilateral change in the billing conditions, the platform explains that the cost of operating with Glovo will not vary, maintaining the commission agreed with the distribution platform. In this way, the explanatory document continues, an order of 20 euros with a 30% agreement, for example, would generate an invoice of 4 euros + VAT by the delivery person, while Glovo would add 2 euros + VAT as a delivery fee. access to the platform on your fortnightly bill.
Sector reaction
For the moment, the announcement has generated an earthquake within the main associations of the restoration sector such as Hospitality of Spain and Restoration Brands, which brings together the main chains of our country, which have already held a meeting with the legal representatives of the platform to show their frontal rejection of the initiative. In the case of the employers of organized restoration, it would have already issued a formal query to Glovo to clarify its intentions.
Given the complaints caused among the restoration businessmen, the implementation of this new system seems to have been put on hold, according to the same sources, due to alleged technical application problems, without Glovo giving a specific date for its entry into vigor.
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