Glovo lays off 6% of staff following fresh fine from Spanish government
sifted.eu
sifted.eu
So nothing to do with the fine
Was it like the you could fail a can and it would take you where you wanted to go for a reasonable fare or would cabbie in general cancel rides, ask for more fare than the allowable maximum etc.
In fact, it is usually cheaper to take a taxi instead of Uber or Cabify if there is the slightest amount of demand pricing in action. The Cabify app also is able to request rides from taxis alongside their own service, but I suspect this is for regulatory compliance.
In my opinion, the success of ridesharing apps in Spain is due to knowing upfront how much the trip is going to cost (handy outside your hometown, some less honest taxi drivers would take the, ahem, touristic route, anyway taxi apps offer upfront price now as well) and clean vehicles with well dressed drivers that defer to the passenger. The rude, sweaty taxi driver chain smoking and blasting right wing radio stereotype is still very prevalent in the Spanish collective memory...
Glovo is trying to install a job model that does not fit our view of what the relation on employer and employee should be, and because of that has been fined several times.
The case for Uber or Cabify is a bit different. There is a well established Taxi guild which will fight to keep others from taking part of their business, and in that case, each region makes their own decissions and regulations, not the central government.
Of course, the income started going down once the incentives were removed. Drivers could not pay their loans and got their vehicles repossessed. Sit in a Uber in my city and you’ll not hear a single driver say anything good about Uber.
Sure, I know that drivers should have known what they were doing, but if your business model depends on exploiting desperate, poorly educated workers by dangling shiny golden carrots (all with a slick presentation and weapons grade persuasion), then maybe your business can f itself.