Prosecutors in Italy have opened up a labor exploitation investigation into the Italian arm of Spanish food delivery platform Glovo, over allegations that the company illegally underpaid tens of thousands of its riders.

According to Reuters, prosecutors placed Glovo's subsidiary Foodinho under judicial supervision on February 9, with court documents detailing testimony from 39 migrant workers who claimed that pay for some riders came in more than 75% under the poverty threshold. Officials also believe that Foodinho systematically misclassified its workers as independent contractors to sidestep Italian labor protections, potentially impacting as many as 40,000 riders across the country.

"The checks carried out point to a situation of genuine labour exploitation, perpetrated for years to the detriment of a very large number of workers, who receive pay that is disproportionate to the quantity and quality of the work performed," prosecutors said.

The investigation is the latest in a line of recent attempts by Italian authorities to tighten oversight of the country's gig economy, particularly around rider classification and pay standards. Prosecutors said judicial supervision will remain in place while authorities assess whether penalties are needed, which could include potential back pay or changes to Foodinho’s employment model.

Glovo and its parent company Delivery Hero told Reuters that they are cooperating with investigators and reviewing the findings, but denied engaging in labor exploitation, arguing that their pay structure complies with existing regulations and industry norms.