Food delivery app, Foodora – the pink one – has confirmed they’re wrapping up business in Australia at the end of the month because it wants to explore opportunities in other markets.
Let’s not beat around the bush here, having Uber Eats as your main competitor is no easy feat. Not to mention their other competitor service, Deliveroo.
According to the ABC, Foodora announced they would “shift focus towards other markets where the company currently sees a higher potential for growth.”
The food delivery service first begun business in Australia in 2015 and will officially exit our markets on August 20. Foodora is expected to “wind down” services throughout the month.
Country Manager at Foodora Australia Jeroen Willems told The Age: “The company will fully utilise its resources to ensure employees find suitable alternative roles, as well as support partners and contractors during this transition.”
Despite their leave, the company will still have to defend themselves in court. In July, former food delivery rider Josh Klooger claimed he was unfairly dismissed. After publicly contesting wage reductions in March of this year, Klooger was sacked from the service.
Foodora is also being sued by Fair Work Ombudsman for allegedly treating three of their delivery drivers as independent contractors instead of actual employees of the company. This meant the three drivers were being classed as their own independent businesses and so did not receive superannuation, annual leave, and sick leave etc.
Interestingly, the ABC were the ones to break the news to an actual Foodora driver who said: “…this is a nice news. It’s like a dream come true.”
You can read more about that, HERE.Image: Getty Images / Olaser