Foodora to cease Australian operations

FOOD delivery company Foodora is shutting down its Australian operations, abandoning the field to UberEats and Deliveroo.

FOODORA is getting out of the Australian food fight.

The German meal delivery company, which entered the country with the acquisition of local delivery start-up Suppertime in 2015, has announced it will cease all operations Down Under by August 20.

In a statement on Wednesday, Foodora said the “decision to leave the Australian market and cease operations” was “in response to a shift in focus towards other markets where the company currently sees a higher potential for growth”.

“We wish to express our gratitude to all of our customers, contractors and employees for their dedication to Foodora Australia, and for allowing us to be a part of their everyday,” Foodora Australia country manager Jeroen Willems said.

“It has been a privilege to bring the food you love right to your door.”

The statement said Foodora would “fully utilise its resources to ensure employees find suitable alternative roles, as well as support partners and contractors during this transition”.

It’s understood the company’s 41 staff and 1000 riders were only informed of the shock news this afternoon.

The Transport Workers Union (TWU) has accused Foodora of ceasing its Australian operations to “avoid responsibility for paying its riders millions of dollars in backpay as a result of wage theft”.

TWU National Secretary Tony Sheldon said Foodora, like other food companies, had denied riders fair rates, superannuation, workers compensation and annual leave.

“It is imperative that Foodora pays compensation to its riders. It is a disgrace that it has given them notice of just one week of ‘normal’ work. These people have rent, bills and tuition fees to pay,” Mr Sheldon said.

It comes as Foodora faces two ongoing legal matters — an unfair dismissal case before the Fair Work Commission, and a sham contracting lawsuit brought by the Fair Work Ombudsman.

The workplace cop sued Foodora earlier this year alleging it was incorrectly classifying employees as “independent contractors”. That case is shaping up as a major test case for all so-called “gig economy” employers, including rivals Deliveroo and UberEats.

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