KPMG Corporation has published its audit of the Glovo platform’s financial statements in Spain after a two-year delay. The auditor explicitly points to “serious doubts about the company’s ability to continue as a going concern.”
The main reason for this situation is the ongoing litigation between the platform and the Spanish government. These are the result of a legally mandated change in the employment model for suppliers. To keep the Spanish company afloat, its owner (Delivery Hero) will have to pump millions more into it.
Glovo in Spain faces more problems: KPMG accuses the platform of using accounting methods that artificially lower actual turnover (and therefore taxation). Furthermore, the fact that the platform’s reports for 2023 and 2024 were approved with a delay of more than two years constitutes a violation of trade regulations.
The platform’s overall business credibility is also in question: although it recorded a 27% revenue increase in 2024, some segments of its business (e.g., supermarket delivery) are generating significant losses.
As a reminder, Glovo has so far been required to pay a staggering €490 million to the Spanish Labor Inspectorate in arrears of social security contributions for its delivery partners. A further €96 million has been secured against potential claims. A criminal case against Glovo CEO Oscar Pierre for violating workers’ rights is also ongoing.
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