Barcelona Court Dismisses Just Eat's €295 Million Lawsuit Against Glovo for Unfair Competition

The Commercial Court 2 of Barcelona has delivered a significant ruling in the ongoing conflict between food delivery giants Just Eat and Glovo, dismissing Just Eat's lawsuit for €295 million, which alleged unfair competition. The court's decision was based on the assertion that Glovo has operated well within legal boundaries and that their employee contracts, effective since 2019, support worker autonomy. In the ruling accessed by Europa Press, the court emphasized that the home food delivery service through digital applications represents an innovative sector that is hindered by outdated regulatory frameworks. It highlighted the contrasting business models of the two companies: Just Eat draws 80% of its revenue from physical restaurants while only 20% stems from home delivery, in contrast to Glovo, which derives most of its income from delivery services. Just Eat’s lawsuit revolved around accusations that Glovo hired its riders as false self-employed workers, purportedly infringing labor regulations. The company claimed to have substantial competitive disadvantages, citing costs associated with employing its delivery workers compared to Glovo's savings from hiring them as self-employed. However, the judge dismissed this claim, stating that the cost per order would remain the same regardless of Glovo’s employment model. The court also referenced broader market dynamics affecting both companies, including operational challenges arising from the COVID-19 pandemic and the ongoing war in Ukraine, which have resulted in increased fuel prices and operational costs. Regarding business strategies, the ruling pointed out that Just Eat and Glovo have evolved differently over the years. Just Eat has adhered to a differentiation strategy, focusing on service quality and regulatory compliance, while Glovo has pursued an aggressive territorial expansion strategy, tapping into niche markets with local promotions and flexible loyalty plans. This ruling underscores the complexities and competitive strategies within the rapidly evolving food delivery sector, which has seen heightened scrutiny and varying operational approaches in response to increasing consumer demands and regulatory challenges. Related Sources: • Source 1 • Source 2