Canberra: Menulog is shutting down its Australian operations, marking the latest casualty in the fiercely competitive food delivery market.
The move will affect thousands of delivery riders and about 120 direct employees, according to an announcement by the company’s Dutch parent, Just Eat Takeaway.com. The Australian-founded platform will officially stop taking orders from November 26, ending a 20-year presence in the country’s delivery industry.
Worker impact and union response
The Transport Workers’ Union (TWU) described the closure as a shock to riders who depend on Menulog for their livelihood.
Michael Kaine, TWU’s national secretary stated that, “This will come as a shock to the thousands of food delivery riders who rely on Menulog for income. We will be working to ensure those workers receive pay for their work and fair exit payments over the coming weeks.”
Kaine added that the situation highlighted the ‘grim reality’ of the gig economy, where many workers still face below-minimum pay, no sick leave, no superannuation, and constant pressure to deliver quickly.
Voluntary payments for couriers
While Menulog’s direct employees will receive redundancy packages, riders are not legally entitled to the same benefits. However, the company confirmed it would offer a four-week voluntary payment to eligible couriers.
According to media, riders who have worked for Menulog for at least six months and completed a delivery in the past eight weeks will qualify for the payment, calculated based on their average earnings.
Managing director’s statement
Menulog’s managing director, Morten Belling, acknowledged the emotional toll of the decision. Morten Belling remarked that, “Today is a tough day for the Menulog business, and I would like to reassure everyone this decision was not taken lightly. Our priority now is to support our customers, couriers and partners.”
Industry challenges and closures
The decision follows a pattern of consolidation within Australia’s delivery app sector. Menulog shut down its New Zealand operations last year, while Deliveroo exited the Australian market in 2022. Other smaller players, including grocery delivery startup Voly, have also folded amid intense competition and thin profit margins.
The closure will leave Uber Eats and DoorDash as the dominant players in Australia’s delivery space, alongside niche services such as HungryPanda.
Menulog, known for its ‘Did Somebody Say’ campaign featuring Christina Aguilera, Snoop Dogg, and Katy Perry, has urged customers to redeem any unused vouchers or credits before the app shuts down in two weeks.
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