The Spanish branch of the Glovo platform provided journalists with the results of a private investigation into the activities of its market rival, UberEats. It revealed that UberEats continues to use the services of individuals working as Delivery Drivers, but not under employment contracts, but as self-employed individuals. Spain has a “Ley Rider” law in place, which requires Delivery Drivers to employ Delivery Drivers under employment contracts rather than treating them as independent contractors.
A report commissioned by Glovo shows that approximately 40% of orders fulfilled by Uber Eats in Spain are still fulfilled by Delivery Drivers without a formal employment contract, which constitutes a violation of labor law. Both platforms are currently under intense pressure from the local Labor Inspectorate and the Ministry of Labor. Glovo has previously received numerous fines for false self-employment (over €200 million), and UberEats currently faces a fine of over €130 million.
Interestingly, Glovo belongs to DeliveryHero, which is slated to be acquired by Uber. However, the Spanish market, among others, was excluded from this merger (more on this transaction here).
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