Delivery Hero, the German parent company of Glovo, has beefed up its financial provisions as it braces for potential legal fallout in Italy over the employment status of its delivery riders. The company announced that these heightened costs are already baked into its adjusted earnings forecast for 2024.

The total provision has now climbed to €253 million (roughly $287 million), a cushion intended to absorb possible claims from Italian authorities for unpaid social security contributions, interest, and penalties spanning from 2016 through the end of 2024.

While the company reaffirmed its financial outlook for 2025, it has revised its adjusted EBITDA for 2024. Previously estimated at around €750 million, it’s now expected to land closer to €693 million — a direct result of these increased provisions.

Delivery Hero has faced growing scrutiny across Europe regarding how it classifies its gig workers. In Spain, the company was hit with fines between 2022 and 2023 for failing to formally employ its riders. Responding to regulatory pressure, the firm announced in December that it would shift to employing freelance riders in Spain on a full-time basis — a move it warned would shave €100 million off its earnings.