Spanish Food Delivery App Glovo Makes Drivers Full-Time Employees

Thousands of delivery drivers in Spain who currently work for the popular food delivery app Glovo will soon transition from freelance contractors to full-time employees, marking a major shift in the company’s labor model. The announcement, made on Monday by Glovo’s parent company, Delivery Hero, represents a significant response to years of regulatory pressure from the Spanish government, which has been pushing app-based platforms to provide labor contracts and better protections for gig workers.

Delivery Hero, headquartered in Berlin, explained that Glovo is moving away from the freelance model primarily to avoid ongoing legal uncertainties surrounding the classification of gig workers in Spain. The shift will have a financial impact on the company, with Delivery Hero anticipating a 100 million euro ($105 million) reduction in earnings in 2025 due to the increased costs associated with providing employee benefits. Despite this change, Glovo reaffirmed its belief in the freelance model, emphasizing that it offers greater flexibility for a diverse range of riders who prefer the freedom of gig work. “We still believe the freelance model offers more flexibility to a wider range of riders to be part of the delivery community,” the company stated.

The new employment model will be rolled out across more than 900 locations in Spain where Glovo operates, affecting approximately 15,000 delivery drivers. This move aligns with Spain’s broader regulatory efforts to ensure gig economy workers receive the same rights and protections as traditional employees. In particular, it follows the introduction of the “Rider Law” in 2021, which mandated that delivery platforms classify their workers as employees rather than independent contractors. This law was introduced to provide gig workers with access to critical benefits such as paid leave, unemployment insurance, and social security contributions, which are typically unavailable to freelancers.

Glovo’s decision is expected to have far-reaching implications, not only for its own operations but also for the broader gig economy in Spain and potentially other markets where similar regulatory challenges exist. By transitioning its workforce to employee status, Glovo is setting a precedent that may influence how other gig economy companies, including rivals in food delivery and ride-hailing services, approach worker classification in the future.

This development underscores the evolving landscape of the gig economy, where companies are increasingly being held accountable for the rights and well-being of their workers. The shift highlights the delicate balance between offering flexibility for workers and ensuring they receive fair treatment and job security. For Glovo’s drivers, this change will likely mean more job stability, access to benefits, and enhanced legal protections, while the company navigates the challenges of increased operational costs and compliance.

Ultimately, Glovo’s decision to transition its delivery drivers from freelancers to full employees is part of a broader, growing global conversation about the classification and treatment of gig economy workers. This shift is emblematic of the increasing scrutiny on how companies in sectors like food delivery, ride-hailing, and other platform-based industries categorize their workforce. The move not only highlights the pressing need for companies to adjust to the evolving landscape of labor laws but also serves as a reminder that technological advancements and business models must be balanced with the social responsibility of ensuring fair treatment and protection for workers.

As governments and regulators worldwide introduce new laws to address the rights and welfare of gig workers, companies like Glovo are finding themselves caught between maintaining the flexibility that gig work offers and meeting the requirements of employment laws that provide greater security and benefits to workers. The transition to an employment-based model reflects a recognition of this balancing act, as well as a proactive approach to mitigate legal risks and ensure compliance with increasing regulatory pressures. By adopting this new approach, Glovo is positioning itself to be more resilient in the face of growing labor protections that are becoming commonplace in key markets.

At the same time, the move highlights a broader societal shift in how gig economy workers are viewed. Once seen as independent contractors with limited access to traditional employment benefits, gig workers are now being recognized as integral parts of the workforce who deserve the same rights, protections, and benefits as other employees. In doing so, companies like Glovo must adapt their business models to retain competitiveness while simultaneously fulfilling their obligations to the individuals who drive their success.

In the long term, this shift may set a precedent for other gig economy platforms. As businesses seek to maintain both innovation and worker welfare, the need to navigate the complex intersection of technology, labor law, and social responsibility will only grow. This evolving dynamic will likely influence how the gig economy develops in the years to come, pushing for a more equitable balance between operational flexibility and workers’ rights. Glovo’s decision is a significant step toward redefining the relationship between platform-based companies and their workforce, reshaping the future of work for millions of gig workers around the world.