Glovo’s ERE Announcement: A Turning Point for Delivery Workers in Spain
Glovo has officially initiated consultation for an Employment Regulation File (ERE) that could impact up to 750 delivery workers across more than 60 locations in Spain. The stated rationale behind this decision is the company’s inability to maintain a profitable employee-driven distribution model in many parts of the country.
Corporate Challenges and Union Concerns
Despite Glovo’s official line, unions such as CCOO previously raised alarms about the company’s covert operations, hinting at ongoing layoffs characterized as “disciplinary dismissals.” This has led to questions about the ethical groundwork on which these layoffs are being justified.
The Context of the Decision
Significantly, this decision follows closely on the heels of Glovo completing its adaptation to Spain’s Rider Law. Just eight months ago, the company transitioned its delivery workers, who were previously classified as freelancers, to employees. This paradigm shift marks Glovo’s struggles to establish a viable logistics framework while shouldering the costs associated with full employment, as mandated by the Workers’ Statute.
Background on Compliance with the Rider Law
Glovo was the last of the major delivery platforms to align with the Rider Law, enacted in 2021, which faced implementation delays and institutional scrutiny. This slow transition culminated in July 2025, when Glovo regularized over 13,000 delivery drivers to avert severe penalties, including potential criminal charges against its management for widespread fraud.
Strategic Model Shift: Gen2 to Gen1
Amidst these challenges, Glovo is moving away from its Gen2 logistics management model, citing its inefficiency in small to medium municipalities. The company plans to shift to the Gen1 model, primarily a marketplace system where restaurants or subcontracted services handle deliveries. Glovo will retain its role in operating the app and collecting commissions, thereby distancing itself from the labor costs associated with direct employment.
Operational Impacts and Figures
- 750 delivery workers will be affected by the ERE.
- Over 60 locations may experience reduced services or total eliminations.
- Operations will continue normally in over 800 cities.
Assessing the Sustainability of the Delivery Model
This announcement raises critical questions about the sustainability of Glovo’s delivery model under current employment laws. While the company is now compliant with the law, the viability of maintaining a paid workforce in areas with lower order volumes remains in doubt. The COVID-19 pandemic temporarily boosted demand for home deliveries, but this surge has normalized, leaving platforms struggling to find a profitable balance without reintroducing questionable working conditions.
Government Response and Market Realities
In response to Glovo’s ERE, Labor Minister Yolanda Díaz has condemned the actions as “blackmail” and promised that compliance with labor laws will be stringently monitored. While she reaffirms the necessity of following the law, the ERE itself does not constitute a violation; reducing operations in unprofitable areas is within Glovo’s rights.
The Bigger Picture: Structural Changes in the Delivery Sector
Ultimately, this situation reflects a broader transformation within the delivery sector. The initial profitability of platforms often hinged on a model reliant on self-employed workers, a stance that Glovo staunchly defended. The real challenge moving forward is whether the business can thrive under the financial pressure associated with compliance to new labor regulations.
As these developments unfold, stakeholders in the delivery ecosystem are left to ponder whether the industry’s future will favor employee-based models, or whether a return to more flexible—yet precarious—employment conditions will emerge as the norm once again.