Deliveroo, a food delivery app founded in the United Kingdom, is leaving Australia, blaming the country’s difficult economic conditions.
The 2015-established Australian operation of the corporation is being placed into voluntary administration.
Deliveroo is under increasing pressure to recognize its 15,000 riders as employees, as the nation’s new administration pledges to improve conditions for gig workers.
It has also encountered competition from Uber Eats and Menulog.
Deliveroo announced that it would no longer take orders through its app, with consumers receiving an error notice if they attempted to do so.
“This was a difficult choice that we did not make lightly. We would want to thank everyone engaged in the Australian business over the past seven years, including workers, customers, riders, and restaurant and supermarket partners “Eric French, the chief operating officer of Deliveroo, stated in a statement to investors.
“Our current priority is to ensure that our staff, riders, and partners are supported throughout this process,” he continued.
In its statement, the business guaranteed higher severance payouts for employees in addition to compensation for riders and some restaurant partners.
During the pandemic, demand for food delivery apps skyrocketed, but they have subsequently encountered obstacles, like customers reducing their spending and the tightening of rules in various countries.
During this year’s election campaign in Australia, the current prime minister, Anthony Albanese, pledged to increase workers’ rights if his party was elected.
Members of his administration have referred to gig work as a “disease” of the economy, claiming that it depresses the wages of one million people.
Deliveroo stated last month that it would leave the Dutch market at the end of November.
Since the beginning of the year, Deliveroo’s London-listed shares have lost around fifty percent of their value.
