Glovo Shifts to Employment Model for Spanish Delivery Riders

Delivery Hero's Spanish subsidiary, Glovo, is transitioning from a freelance to an employment-based model for its delivery riders in Spain. This shift is in response to anticipated reclassification decisions by Spanish labor authorities regarding alleged violations of employment laws since their 2021 operational model change. While aiming to reduce legal uncertainties, this change is projected to impact Glovo's adjusted EBITDA by approximately EUR 100 million in fiscal year 2025. Nonetheless, Glovo expects to maintain a positive adjusted EBITDA in Spain for that period.

The company's overall contingency is expected to rise to EUR 440-770 million in its 2024 full-year financial report, up from the previously disclosed EUR 330-550 million. These contingencies include social security contributions, fines, VAT claims, and other charges expected to be settled provisionally via payments or bank guarantees from Q2 2025 onwards. Despite the shift, Delivery Hero affirms its 2024 guidance, indicating confidence in its strategic adjustments and future performance.