The Italian Communications Authority (AGCOM) has ordered Foodinho (Glovo) to pay a fine of 150,000 euros. According to the authority, the platform is operating illegally because its activities 'do not differ from typical postal activities' (collection, sorting, and delivery). However, it carries out these activities "without authorisation" and without respecting collective agreements, causing damage to the entire "last mile" delivery sector and unfair competition.
What is more, Foodinho does not limit itself to outsourcing the collection and delivery phase through commercial partnerships with companies that operate in complete autonomy and entrepreneurial freedom, but organises, coordinates and controls these phases through the software that manages the platform and the drivers.
Furthermore, through the "system of selection, organisation, coordination, and control" of the bike couriers, as well as "the management of their routes, their times, their equipment, the tracking and monitoring of the deliveries made", the company "exercises a power of direction, coordination and organisational and entrepreneurial control over the network - which it has created - of operators who carry out the delivery to the end customer".
Read on: in Italian