The endless story of the 'Rider Law' today has another controversial chapter to tell. Despite the fact that the regulations will come into force in a couple of weeks, Glovo anticipates that approximately 80% of its distributors in Spain will remain self-employed . However, the company clarifies that they have made some adjustments to their work model to comply with the new regulations.
Diego Nouet , director of Glovo in Spain, pointed out that the 'Rider Law' introduces a “presumption of employment” , which would allow them to justify that There is no “work dependency” and they can be adapted to what the regulations define as self-employment. Before delivering his —controverted — judgment, Glovo consulted with the Roca Junyent and Sagardoy law firms, so they are apparently not taking blind steps. In fact, the firm believes that it is necessary to analyze each case in particular to be able to define whether or not there is a job dependency.
Glovo's strategy includes hiring 2,000 delivery people before the end of 2021 . This figure is equivalent to 20% of the total. However, they anticipate that the number will increase. These 'riders' will have fixed salaries and fees , a movement that represents an increase in the company's operating costs. Nouet himself explained it in statements collected by El Economista:
“It involves an additional cost, but calculating what its exact impact will be is very difficult. Over the next few months we will see how demand and supply behave. We still have to study what we will do with that, because there are several alternatives: absorb them within our account. results, raise prices … We are still analyzing what to do “
Glovo's adjustments to adapt to the Rider Law
On the other hand, and as already mentioned above, Glovo will adapt its operations to “comply” with the 'Rider Law'. Among the new guidelines is that the distributors have the possibility of connecting at any time . In addition, they will be able to define the price of the shipment or subcontract to other distributors “who can complete the services for them.” Nouet reaffirms that Glovo will align with the 'Rider Law' “just as we have done so far,” he declared.
In a statement sent to Hypertextual, in Glovo they express the challenges of adapting to the regulations before the imminent entry into force of the same: “From Glovo we have worked against the clock during the last months to adapt to the regulation, counting on a period very short transition period for a change of such magnitude. We are committed to complying with the regulatory framework in Spain, as we do in the 21 countries where we are present. “
