Food Delivery Service Deliveroo Closes Shop in Australia, 15,000 Riders Left on the Wayside

A Deliveroo rider near Victoria station in London on March 31, 2021. (Dan Kitwood/Getty Images)

Online food delivery service Deliveroo has “immediately” ceased operations in Australia, leaving over 15,000 workers in limbo.

The company went into voluntary administration after its UK parent company, Deliveroo PLC, decided to cease funding and exit the Australian market.

“It is with deep regret that Deliveroo is taking the difficult decision to end our operations in Australia,” Deliveroo Australia General Manager Ed McManus said in a statement on Wednesday.

“Regrettably, therefore, Deliveroo Australia will not be accepting orders from this point onwards and operations will be ceasing imminently.”

Riders will still be able to access the app for up to six months and view past earnings, while outstanding fees will be review as part of the administration process.

Deliveroo launched in Australia in 2015 and had around 15,000 drivers, 120 staff, and established partnerships with over 12,000 restaurants.

“We understand this is difficult news. I want to express my sincere gratitude for all your hard work, your passion, and for working with our restaurant partners to bring millions of customers their favourite dishes over the last six years,” McManus said.

Michael Korda, one of the three voluntary administrators appointed by Deliveroo Australia, said the delivery service was unable to achieve sufficient market share for a sustainable business.

“Our priority is to execute an orderly wind-down of the Australian operations to achieve the best outcome for all stakeholders,” Korda said.

Deliveroo Not Only Hopping Out of Australia

Eric French, the chief operating officer of Deliveroo UK, said the difficult decision had not been taken lightly.

“In Australia, the market is highly competitive with four global players, and Deliveroo does not hold a broad base of strong local positions,” he said.

“In H1 2022, the Australian business represented approximately 3 percent of Deliveroo’s total Gross Transaction Value (GTV) and negatively impacted the company’s adjusted EBITDA margin (as percentage of GTV) by approximately 30 basis points.”

Deliveroo has already pulled out of Germany, Spain, and the Netherlands for similar reasons.

However, Michael Kaine, the national secretary of the Transport Workers Union, accused the business of “spitting the dummy” and affecting the livelihoods of 15,000 drivers.

“Literally up until two days ago, [Deliveroo] was out in the Australian community saying how fantastic they were, what a fantastic offering they had, that they were in the premium offerings in the food delivery service,” he told 3AW radio.

“And then just without warning, literally sending an email out and saying that they’re cutting and running. Now this is not good enough.”