Bankrupt by AI
All case files
On the recordFined €2.6M · Jul 2021

Bad automation

Foodinho and the algorithm with no appeal

Foodinho / Glovo · Gig delivery · Italy & Spain

A rider-management algorithm decided who got work — and gave riders no way to reach a human, state their case, or contest it. Italy’s regulator called that missing appeal the violation.

€2.6M

Garante fine · Jul 2021

~19,000

riders under the system

0

routes to human review

Solely-automated decisions, no Article 22 safeguards.

The finding wasn’t that the algorithm was wrong — it was that no one could contest it.

The record

  • Italy’s data-protection authority, the Garante, fined Foodinho — Glovo’s Italian subsidiary — €2.6 million on 5 July 2021, its first decision concerning gig-economy riders. (EDPB; TechCrunch, Jul 2021)
  • The regulator found the order-assignment algorithms ran with no procedures for riders to obtain human intervention, express their point of view, or contest decisions — which in some cases automatically excluded riders from work. (EDPB record; GDPRhub, decision 9675440)
  • Around 19,000 riders were subject to the system. (GDPRhub)

The scoring nobody could see

Foodinho’s platform scored and ranked its riders and used those scores to allocate work — better scores, better slots; poor scores, fewer assignments or none. Riders could not see how the score was formed, why it moved, or how to challenge it. The system, in the regulator’s account, in some cases excluded riders from work automatically.

None of that is unusual for a gig platform. That is precisely why the case matters: the ordinary way these systems are built was found to be the problem.

No appeal is the violation

The Garante did not fine Foodinho for an inaccurate algorithm. It fined the company because a solely-automated decision affecting people’s livelihoods ran without the human-review, explanation and contest rights that Article 22 of the GDPR requires. The missing escape hatch was itself the breach — not a downstream consequence of one.

That inverts the usual intuition. Teams tend to treat “add a human appeal path” as a nice-to-have to bolt on later. Here, its absence was the finding a regulator could price at €2.6 million.

The lesson

Automating a high-stakes decision without a human-review-and-contest path isn’t a feature gap — regulators can treat the missing escape hatch as the violation itself.

How we’re reading this

Foodinho is Glovo’s Italian subsidiary; Glovo’s parent is Spain’s GlovoApp23. The €2.6M was the Garante’s 2021 decision; the authority continued to supervise the company afterward and issued a further order in 2024. We cite the 2021 findings, which concern automated-decision safeguards rather than the accuracy of any single dispatch.

Sources

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The pattern, anonymizedGood automation, bad automation

Compiled from public filings, court records, company statements and reputable press. Figures are attributed to their sources; allegations are labeled as such. Not legal or investment advice.