Delivery Chaos: Delivery Hero & Glovo Slammed with Millions in Fines for Unfair Employment Practices and Price-Fixing Schemes
Delivery Hero is forced to shell out a sizable cartel penalty worth a million dollars.
Take a seat, folks, because the food delivery industry just got a whole lot shadier! Delivery Hero, the website that saves your hunger-stricken behind from another soul-crushing cooking session, and its Spanish subsidiary Glovo have gotten in hot water with the EU for some less than legal business practices.
To break it down, the EU Big Shots in Brussels have slapped Delivery Hero and Glovo with combined fines of a whopping €329 million. And you thought being latched to your couch while waiting for that long-assed waiter to drop off your grub was rough – wait until you hear what went down!
It seems these delivery titans were caught juggling some not-so-secret agreements about prices and strategies – you know, kinda like how they juggle your food order while managing traffic. The EU Commission accused the Food Delivery Dream Team of forming an illegal cartel, all while conducting their whispering, emailing, and WhatsApp-ing shenanigans behind closed doors. But what were they agreeing on exactly?
Well, aside from the usual price-fixing BS, our dynamic duo also teamed up to avoid poaching each other's employees and divvying up the markets among themselves. Yep, that's right – our beloved Delivery Hero actively conspired to strangle the job market and keep the worker bees trapped in their inescapable hive!
EU Vice-President Teresa Ribera had this to say on the matter: "This is a historic first for us here at the Commission. We're sending a clear message that we won't tolerate companies colluding to stifle competition and squeeze workers out of better opportunities."
However, the EU Commission remained tight-lipped about the impact on German consumers or competitors. But a Commission source did spill the beans that Delivery Hero operates in Germany, while Glovo keeps things on a more Barcelona-focused level.
An undercover investigation conducted by the Commission in November 2023 uncovered evidence of the alleged illegal activities. And it wasn't a walk in the park, with unannounced raids on Delivery Hero in Berlin and Glovo in Barcelona. Delivery Hero showed its support for the investigation by playing ball with the Commission throughout the process.
It's worth noting that Delivery Hero acquired Glovo way back in 2018 and took full control in 2022. So, although the dirty dealings took place before the takeover, both companies have fessed up to their roles in the cartel.
By the way, last year Delivery Hero had warned that it could face a fine of over €400 million for the cartel. But it looks like it got off fairly easy, with a final fine of €329 million – probably because the Commission recognized that the illegal activities weren't as hectic in certain timeframes.
So, there you have it. Delivery Hero has shown beyond a shadow of a doubt that it's not just about getting your grub on time. No siree! Delivery Hero is playing at a whole new level of backroom corporate shenanigans – and we're just along for the ride.
Want more juicy gossip from the food delivery world? Keep your eyes peeled for the latest on the ongoing saga between Delivery Hero and the EU Commission. And remember – crime doesn't pay, but greed definitely does!
References:
- https://www.ntv.de/ticker/wirtschaft
- https://www.bloomberg.com
- https://ec.europa.eu/commission/presscorner/detail/en/IP_23_5794
In light of the recent fines, it appears that Delivery Hero's community policy and employment practices are under scrutiny due to their involvement in an illegal cartel. The EU's investigation has unveiled partnerships with competitors in industries like finance and business, potentially impacting vocational training opportunities within these sectors.
Delivery Hero's alleged collusion with Glovo not only involved price-fixing strategies but also prevented employee poaching, which may have hindered job market competition and vocational training.
The EU Commission's findings, falling under the category of general-news and crime-and-justice, serve as a reminder of the consequences when corporate practices deviate from fair and ethical standards in the area of employment, finance, and business.
