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E-commerce

Foodora ceasing operations in Australia

Berlin-based restaurant delivery platform Foodora is winding down services and will cease operations in Australia by August 20.

The company framed its exit from the Australian market as a decision to concentrate on other markets where it sees a higher potential for growth.

Foodora also operates in Austria, Canada, Finland, France, Germany, Italy, the Netherlands, Norway and Sweden.

But the move comes amidst growing talk of industry regulation, with food delivery platforms and other service providers in the gig economy being called out for perceived lack of workplace protections and employee benefits.

In June, in what many regard as a test case, the Fair Work Ombudsman started legal proceedings against Foodora, alleging the food delivery company misrepresented riders as independent contractors when they were actually employees.

At the same time, the food delivery market in Australia has become increasingly crowded, as international players including Deliveroo, Menulog and Uber Eats ramp up their marketing efforts.

Foodora entered the Australia market through its parent company, Delivery Hero, which acquired local restaurant delivery service, Suppertime, in September 2015.

Delivery Hero, which is also based in Berlin, later rebranded Suppertime to Foodora and expanded the service from Sydney and Melbourne to Brisbane.

Foodora said it will assist employees in finding suitable alternative roles and support partners and contractors during the transition.

“We wish to express our gratitude to all of our customers, contractors and employees for their dedication to Foodora Australia, and for allowing us to be a part of their everyday,” Jeroen Willems, Foodora Australia country manager, said.

“It has been a privilege to bring the food you love right to your door.”

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