Spain’s on-demand delivery app and work services platform Glovo has been fined approximately €57 million for breaching local labour laws by falsely classifying over 7,800 of its delivery couriers in Madrid as self-employed, reports TechCrunch citing local newspaper El Diario. Citing sources familiar with the Labor department’s investigation of Glovo, the newspaper reports that the penalty breaks down into a €32.9 million fine for breaking labor laws; €19 million in unpaid social security contributions for the riders it had falsely claimed as self-employed; and €5.2 million for visa violations as the inspectors found Glovo to be employing a number of foreigners without a work permit. The newspaper puts the running tally at over €200 million in penalties. Last year, Glovo was fined €79 million last September for also misclassifying delivery workers as self-employed.

The delivery platform continues to dispute all penalties for labor law breaches, and a spokeswoman told TechCrunch it will file an appeal against the latest penalties. On May 2021, Spain passed one of Europe's first laws relating to gig-economy workers' rights, requiring riders for food delivery platforms be made employees on formal labour contracts. This came into effect on August 2021. The government is reportedly looking at how it might prosecute Glovo under the new penal code.

In July 2022, German delivery platform Delivery Hero acquired a majority stake in Glovo for USD 2.6 billion. Glovo operates across 25 countries in Europe and reported annual revenue of €140.5 million in 2020. Parent company, Delivery Hero made €6.6 billion in annual revenue in 2021.