The sector of delivery Spanish has started a fight with legal consequences. In a letter to the government Uber Eats accuses Glovo of violating the driver’s law and continued to hire bogus self-employed as delivery men, the very practice the regulations sought to ban.
In particular, the letter sent by Courtney TimsGeneral Manager of Uber Eats Spain, to the Vice President of the Government and the Minister of Labour, Yolanda Diaz, accuses Glovo of continuing to hire its distributors as self-employed, which harms the other competitors in the industry. “Three months after (the passage of the equestrian law) all companies had to adapt to the new law. All? Not at all. Glovo, the largest company and leader in delivery in Spain, has chosen to continue working with freelancers,” says Tims.
“Today, more than six months after it came into force, companies that comply with the law find themselves in a paradoxical situation. Our collaborating fleets cannot find couriers because they prefer to be autonomous, so they work with Glovo, the only company that, contrary to the Passenger Law, allows them,” confirms the General Manager of Uber Eats Spain.
The letter concludes with a question to the vice-president of the government, in which a critical tone is heard, and a request that the executive branch take sides in the new war in Spain’s supply sector. “Should we follow Glovo’s example and work with freelancers to be able to compete on an equal footing?” Without a doubt, this is a vulnerable situation that the Department of Labor needs to address…
The keys to the driver law that started the war between Glovo and Uber Eats
The government passed the so-called “Drivers Law” on May 11, giving companies three months to adapt to and comply with the new regulations. Thus, the regulation began to apply on August 12, 2021. Seven months later, war has broken out in the industry after Uber Eats accused Glovo of non-compliance.
But, What are the key points of the new legislation? The main one is the amendment of the consolidated text of the employee statute and determines the acceptance of the employment of the distribution or distribution activities of any type of products or goods through the algorithmic management of the service or working conditions through a digital platform.
Therefore, delivery platforms like Uber Eats or Glovo must shut down their merchants and stop maintaining professional relationships as freelancers. The decision did not go down well with these companies, which despite repeated complaints had to fulfill one of Yolanda Díaz’s commitments as head of the Department of Labor.
After several months of use, Glovo’s situation confirms, according to Uber Eats, that suppliers “wanted to retain the flexibility of the autonomous model, which allowed them to choose when to work, prioritizing moments of high demand and thus generate higher income. “
Glovo has a new owner
The open war between Uber Eats and Glovo comes just weeks later delivery heroone of the giants of the sector at international level, announced a purchase agreement with the Spanish unicorn that would value the company at around 2,300 million euros.
Delivery Hero’s stake in Glovo is not new. It has held 44% of the ownership for years, but is now adding another 39.4% after reaching an agreement with several shareholders of the Barcelona-based company, who will receive a block of shares from Delivery Hero itself.
Next, as reported by ReutersThe Delivery Hero purchase agreement would include a commitment from the German company Financing Glovo with up to 250 million euros during this yearfocused on consolidating its growth and developing both in Spain and internationally.