Melbourne, Australia: The British food delivery app Deliveroo is quitting the Australian market declaring that the company has decided to stop its operations and the unit is given to voluntary administration.
In the email to customers, the company said that it has taken a “sad announcement” to end its operations in Australia and has appointed Korda Mentha, an Asia-Pacific advisory and investment firm, as administrators.
Deliveroo, like all other companies, is now doing business in challenging economic conditions, which requires us to take difficult decisions. We always aim to deliver the best possible service for our consumers wherever we operate, and if we cannot do that we will be prepared to review our position.
the delivery company informed.
The company also stated 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 announced that although it will stop taking orders through the app, user account information would still be accessible for up to six months.
Deliveroo was one of numerous food delivery services available in Australia along with Uber Eats, Menulog, HungryPanda, and DoorDash. The company has been recently involved with legal disputes over employees’ rights, just like many other gig economy businesses operating in Australia.
In May 2021, the firm lost a Fair Work Commission complaint when the commission found that it was “harsh, unjust, and unreasonable” to fire a rider during the height of the COVID-19 outbreak for being too slow.