The OG food delivery service named after our national animal has gone into administration. Deliveroo Australia has ceased operations as of today, citing a tough economic environment and an inability to keep up with its competitors.
“We have today made the sad announcement that we are leaving Australia,” the company said in a statement.
“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.”
Deliveroo is a UK business with local outfits across the world. They cite stiff competition from competitors like UberEats, Menulog, and Doordash, who relegated them to fourth position in terms of market share in Australia.
The company previously ceased operations in the Netherlands and Spain earlier this year while also pulling out of Germany in 2019.
Deliveroo employs 15,000 local riders who deliver food from 12,000 restaurants across the country to people’s homes. The service, which was introduced in Australia in 2015, became an essential part of lockdown life during the COVID pandemic as restaurants become takeaway only, helping many businesses to survive.
Now, many of those restaurants, the delivery riders, and the people who use the service, will have to go elsewhere, as will the company’s 120 staff.
“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,” Deliveroo said.
The food delivery industry is currently under increasing pressure due to increased wage demands, expanding part-time workers’ rights, and the rising cost of fuel.