Delivery Hero Adjusts Provisions for Riders' Status in Italy
(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)
