Finance
Delivery Hero increases provisions for riders' status in Italy
Published by Global Banking & Finance Review®
Posted on April 11, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 11, 2025
1 min readLast updated: January 24, 2026
Delivery Hero increases provisions for riders in Italy, impacting 2024 earnings. The company faces scrutiny over labor status and plans to hire riders in Spain.
(Reuters) - Glovo's owner Delivery Hero has increased provisions related to the legal status of its riders in Italy and said in a statement that the increased expenses are reflected in its adjusted earnings for the 2024 financial year.
The increase in provisions, that now amount to a total 253 million euros ($286.78 million), is meant to cover social security contributions, interest and fines that Italian authorities may claim for the period from 2016 until the end of 2024 for Glovo in the country.
As it confirmed its 2025 outlook, the firm said the previously disclosed adjusted EBITDA of around 750 million euros for the 2024 financial year is now expected to come in at 693 million euros.
The German firm has been under scrutiny for the labour status of its riders and has been fined in Spain between 2022 and 2023 for not formally hiring them.
In December it said it would hire its freelance riders as full-time employees in Spain, warning of a 100 million euro hit to earnings.
($1 = 0.8822 euros)
(Reporting by Paolo Laudani, Editing by William Maclean)
The article discusses Delivery Hero's increased provisions for rider status in Italy and its impact on earnings.
To cover social security contributions, interest, and fines for Glovo riders in Italy from 2016 to 2024.
The increased provisions reduce the 2024 adjusted EBITDA forecast from 750 million euros to 693 million euros.
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