Latest news with #Glovo
Morocco World
3 days ago
- Business
- Morocco World
Glovo Faces Antitrust Allegations in Morocco's Food Delivery Market
Doha – The Competition Council of Morocco has officially notified GlovoApp Morocco of several grievances regarding alleged anticompetitive practices in the digital food ordering and delivery platform market. The notification follows an investigation initiated by the Council's self-referral decision number 20/D/2024 dated February 19, 2024. The investigation stems from a surprise inspection of Glovo's Casablanca offices on October 22, 2024. This operation was authorized by the King's Prosecutor and conducted with support from the National Judicial Police Brigade. According to the Council's Rapporteur General, the investigation revealed evidence of anticompetitive practices by Glovo. The company is accused of abusing its dominant market position, exploiting the economic dependency of its commercial partners, and implementing unfairly low pricing strategies. The notification opens a contradictory procedure phase that guarantees Glovo's defense rights. The constitutional institution, headed by Ahmed Rahhou, clarified that this notification does not prejudge the final decision, which can only be determined by the Council's board. Glovo, a Spanish-origin delivery platform, quickly responded to the allegations in a statement released Thursday. The company acknowledged receiving the notification while stressing that it 'does not prejudge the Council's final decision.' Read also: Glovo Maroc Sees 40% Surge in Summer Deliveries The food delivery platform stated it 'fully respects the ongoing procedure, as governed by current regulations.' Glovo reaffirmed 'its deep commitment to Morocco' and its desire to 'maintain the best relationships with its entire ecosystem — partners, delivery drivers, and customers — and Moroccan authorities.' 'We remain committed to respecting fair competition rules, transparency, innovation, and service quality to contribute to the development of our sector, which is in constant technological evolution, in a win-win dynamic,' Glovo concluded in its statement. Since establishing operations in Morocco, Glovo has transformed the local home delivery landscape. Morocco represents the company's fourth-largest market globally. The platform currently works with more than 6,500 business partners and 4,500 couriers throughout the kingdom. Article 7 of Law No. 104-12 on freedom of prices and competition prohibits behaviors that aim to 'prevent, restrict or distort competition.' The law specifically forbids imposing 'unjustified commercial conditions' or 'minimum resale prices.' According to the Competition Council, such practices risk harming offer diversity, innovation, and consumer rights. The final decision will be made by the Council's board after conducting a contradictory investigation respecting the defense rights of the concerned party and following a Council session. The board alone will determine whether the alleged grievances are well-founded. This regulatory action aims to preserve the competitive balance of the market in the interest of consumers and proper economic functioning. Tags: Council of competitionFood DeliveryGlovo in Morocco
Ya Biladi
4 days ago
- Business
- Ya Biladi
Moroccan Competition Council targets Glovo for anti-competitive practices
The general rapporteur of the Competition Council announced on Wednesday that formal grievances have been issued to a company accused of anti-competitive practices in Morocco's digital meal delivery market, both nationally and locally. The notice, issued under Article 29 of Law 104.12 on the freedom of prices and competition (as amended and supplemented), marks the start of an adversarial process and ensures the company's right to a fair defense, according to a statement from the general rapporteur. The same statement noted that, in line with its legal mandate under the Constitution, Law 20.13 on the Competition Council, and Law 104.12, the Council opened an investigation on February 19, 2024, through decision 20/D/2024, to examine allegations of anti-competitive practices in the digital meal ordering and delivery market across Morocco. The investigation found evidence of anti-competitive behavior by Glovo, a major player in the sector. The alleged practices include abusing its dominant market position, exploiting the economic dependence of its business partners, and engaging in unfairly low pricing. The statement also made clear that the notice of grievances does not prejudge the final outcome. The final decision rests with the Council's board, which will rule after a fair and thorough investigation, ensuring the company's right to defend itself.
Reuters
11-04-2025
- Business
- Reuters
Delivery Hero increases provisions for riders' status in Italy
April 11 (Reuters) - Glovo's owner Delivery Hero ( opens new tab 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. here. 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)
Zawya
13-02-2025
- Business
- Zawya
Delivery Hero delivers 4th quarter growth above estimates, shares rise
German online takeaway food company Delivery Hero on Thursday reported stronger than expected growth for the fourth quarter, aided by strong order development and increasing basket size on its platform. Its shares, which have fallen around 60% from their January 2021 highs as investors shunned food delivery stocks after the pandemic era frenzy, were up 5.7% by 0828 GMT, among top performers of Europe's benchmark STOXX 600 index. Gross merchandise value (GMV), a common metric for delivery firms measuring the total value of all goods sold, grew 8.2% to 12.81 billion euros ($13.37 billion) in the quarter, ahead of analysts' average forecast of 12.31 billion euros in a company provided poll. The owner of Glovo also forecast GMV growth of 8% to 10% for 2025, compared with 8.3% constant currency growth last year. "A solid set of results, in particular driven by MENA and LatAm," analysts said in a note to clients. Delivery Hero reported a quarterly GMV of 3.7 billion euros in Middle East and Northern Africa, its second biggest market behind Asia, while recording 1.1 billion euros in the Americas region. The company said in a separate statement that it planned to buy back around 1 billion euros of convertible bonds, using the proceeds from the Dubai IPO of its subsidiary Talabat , which earlier on Thursday reported a quarterly profit of $138 million. ($1 = 0.9581 euros)
