Food delivery service Foodora is pulling out of Australia this month, with the Germany-based firm saying it is shifting focus to other markets months after being hit with lawsuits over its treatment of workers. The announcement came as Foodora's parent company Delivery Hero said it also planned divestment of its operations in France, Italy, the Netherlands and Brazil, without specifying when it would do so.
Big cities worldwide have seen a proliferation of food delivery bikes and mopeds zipping around the streets in recent years that have revolutionised the industry and stoked debate, strikes and legal challenges over precarious conditions for workers in the new "gig economy".
In Australia Foodora, alongside rivals Uber Eats and Deliveroo, is among the meal delivery platforms that allow people to order from local restaurants via mobile phones. "Foodora has announced... its decision to leave the Australian market and cease operations in response to a shift in focus towards other markets where the company currently sees a higher potential for growth," the group said in a statement Thursday.
The service, which entered Australia in 2015, will wind down and close by August 20, the company said. Also Thursday it said in Berlin that it planned to divest itself of operations in France, Italy, the Netherlands and Brazil while buying online food delivery operations in Romania and Argentina and taking a stake in a Spain-based service that also operates in France and Italy.
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