Delivery company Deliveroo has entered administration, opting to end its Australian operations due to “challenging economic conditions”, according to an email the company wrote to its customers.
“We have today made the sad announcement that we are leaving Australia,” states the email. “This has been a difficult decision to make. We have enjoyed serving you the amazing food that Australia is known for, working with thousands of brilliant restaurants and riders.”
It’s estimated that 15,000 riders will be affected by the decision, as well as thousands of restaurants that rely on the business model.
“Deliveroo, like all other companies, is now doing business in challenging economic conditions, which requires us to take difficult decisions,” said the company email. “In Australia, we have concluded that achieving a sustainable position of leadership in the market is not possible without a disproportionate level of investment which would have highly uncertain returns.”
In August 2021, Broadsheet published a story on the effects of Covid on the food-delivery industry in Australia, including a national rider and driver shortage. This followed an earlier story on the “digital chokehold” services such as Uber Eats and Deliveroo have on Australian restaurants.
These services have been criticised across the globe for a lack of driver safety, with a number of delivery people killed on the job.
Deliveroo has appointed Michael Korda, Andrew Knight and Craig Shepard of Kordamentha as its voluntary administrators.
Got the app? You will still be able to access your Deliveroo customer account for up to six months, but you will not be able to place orders with the company.
Additional reporting by Sarah Norris.
