The food delivery platform Delivery Hero has reached an agreement to acquire an additional 39.4% stake to the one it already holds in Glovo, for which it will become the main shareholder of the Spanish company, exceeding 80% of the capital stock, as reported by the company in a statement.
Just Eat signs with the unions the first agreement of working conditions of 'riders' in Spain
The operation, which is expected to be completed during the second quarter of the year that has just begun once the corresponding authorizations have been received, will be carried out through the exchange of new Delivey Hero shares for Glovo shares.
The German food delivery firm has been a significant shareholder in Glovo for years, with a stake of around 44%, so this new operation will allow it to exceed 80% of the shareholding of the Catalan company. This reinforcement of its position in Glovo will require the fulfillment of some conditions and regulatory approval in different countries in which they operate, although its closing is expected for the second quarter of 2022.
Delivery Hero pointed out that the rest of the shareholders will be able to join the operation before its closing and indicated that it will give shares of its company in exchange for Glovo titles, for which it will issue new titles that it will exchange for others of Glovo at a rate exchange rate in which the valuation of the acquired company will be taken into account.
"Glovo will continue operations with its existing brand and platform under its current management team, led by its two founders who will continue to invest in Glovo. Together with Delivery Hero, they will leverage shared technology to further improve efficiency and accelerate product development. ", assures the German company.
Investment in the Spanish company after the Rider Law
The operation takes place after a year marked in our country by the approval of the law that regulates the conditions of the distributors after years of court battles, which concluded that Glovo, Deliveroo and Uber Eats riders were bogus self-employed. Europe is also making progress in this area, with the recent proposal for Brussels directive that is committed to employing and giving protection to workers of digital platforms.
While Just Eat signed in December with the unions the first agreement on working conditions for riders in Spain, Glovo and Uber Eats have drawn criticism from unions and workers for the way in which they have adapted the new legislation to their model, although the companies say it complies with the norm. Deliveroo, meanwhile, stopped operating in our country on November 29 and the year ended with the entry of new operators such as Getir, Dija or Rocket.