Deliveroo delivers ‘sad’ news to Australians following decision to cease operations due to ‘challenging’ economic conditions #Deliveroo #delivers #sad #news #Australians #decision #cease #operations #due #challenging #economic #conditions #englishheadline


Deliveroo has permanently shut down operations in Australia after facing “challenging” economic conditions. 

The food delivering giant announced the news in a statement on Wednesday, confirming it will enter voluntary administration due to poor profitability in a highly competitive market. 

“It cannot reach a sustainable and profitable scale in Australia without considerable financial investment, and the expected return on such investment is not commensurate with Deliveroo’s risk/reward thresholds,” Deliveroo wrote in the statement.

“Deliveroo Australia Pty Limited (DAPL) has therefore been placed into voluntary administration by its Director and will permanently cease trading imminently.”

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Deliveroo confirmed it will put forward a Deed of Company Arrangement to the administrators and set out the appropriate compensation packages it intends to provide.

This includes payments for employees as well as compensation for riders and certain restaurant partners, the company stated. 

Chief Operating Officer Eric French said the “difficult” decision was not taken “lightly” as he thanked all employees, customers, riders and partners over the past seven years.

“Our focus is now on making sure our employees, riders and partners are supported throughout this process,” he wrote in the statement. 

The Deliveroo team also announced the “sad” news to its customers in an email on Wednesday afternoon. 

“Deliveroo, like all other companies, is now doing business in challenging economic conditions, which requires us to take difficult decisions,” the message read. 

“Achieving a sustainable position of leadership in the market is not possible without a disproportionate level of investment which would have highly uncertain returns.”

The company reiterated that Australians can no loner place orders on the app and said customer accounts will stay open for up to six months before being permanently closed. 

English Headline

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