Food delivery service Deliveroo has announced that it’s closing down in Australia due to low profits and high competition.
The company has gone into voluntary administration in Australia but will remain open in the hundreds of other cities it operates in, including the UK, France Italy and Singapore.
“An important message from Deliveroo” begins a post published on Deliveroo (AU) twitter. It continues, “We have today made the sad announcement that we are leaving Australia. This has been a very difficult decision to make.”
We have enjoyed serving you the amazing foo that Australia I known for, as well as working with thousands of brilliant restaurants and riders.”
In a statement, Deliveroo said they are four international food delivery companies in Australia, and they didn’t hold a “broad base of strong local positions”.
The company’s chief operating officer Eric French has said that they are working to support their employees, riders and partners.
“This was a difficult decision and not one we have taken lightly,” he said in a statement.
“We want to thank all our employees, consumers, riders and restaurant and grocery partners who have been involved with the Australian operations over the past seven years.
“Our focus is now on making sure our employees, riders and partners are supported throughout this process.”
The food delivery service has more than 12,000 partner restaurants, 15,000 riders/drivers, and employs about 120 staff.
Voluntary administrator Mark Korda said in a statement: “Deliveroo was unable to achieve sufficient market share in Australia to develop a sustainable business,” Mr Korda said in a statement.
“To do so would require significant ongoing investment in the Australian market.
“Given this, Deliveroo Australia’s UK parent has advised that it has decided to cease funding Deliveroo Australia.
“Without ongoing funding, the director of Deliveroo Australia resolved to place the company into administration.”
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