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CEO Jitse Groen of Just Eat Takeaway is eager to take over the 50+ percent market share of his Spanish competitor Glovo. The Spaniards are in a particularly risky financial position.

The Audiencia Nacional suspended a two million euro fine to Glovo precisely because of its financial situation. The judge considers the meal delivery company's solvency and liquidity situation too bad. The subsidiary of Delivery Hero is given a little more time.

The judge made this ruling at the end of January, it becomes clear today.

Glovo argued in Madrid that it cannot yet pay the fine because it is not making money. The company has a negative working capital of 20 million euros and expects a loss of 209 million euros in 2023 (2022: 412 million). Moreover, the owner does not want to step in and it is difficult to attract external financing.

Jitse Groen of Just Eat Takeaway views the developments with hope. On Twitter he speaks out plainly: pull the plug.

Delivery Hero of Germany bought Glovo in 2022. The latter is estimated to have a market share of roughly 50 percent and Just Eat between 25 and 30 percent.

Deliveroo has been away from Spanish market for two years.

Last summer, there was still talk of a possible additional cost of 400 million euros because Glovo may have to classify its couriers as employees. That is still being investigated.

Earlier this week, Delivery Hero published preliminary figures for the fourth quarter. Sales increased by 5.5 percent to 2.7 billion euros in that period. Operating income came in at 253 million euros positive.

Photo: Filipe Gabaldón (cc)

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