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Published: Sun, August 05, 2018
Economy | By Melissa Porter

Foodora announces it's pulling out of Australia on August 20th

Foodora announces it's pulling out of Australia on August 20th

The food delivery service confirmed on Thursday it would wind down its operations by August 20 to allow the company to focus on global markets with a higher potential for growth.

A statement from the company released on Thursday says Foodora will "cease operations in response to a shift in focus towards other markets where the company now sees a higher potential for growth".

Foodora Australia manager, Jeroen Willems said that the company will provide support to employees, contractors and partners impacted by the decision.

Food delivery service Foodora will cease its Australian operations this month.

IBISWorld points out the massive competition faced by Foodora in the food delivery space as a reason for its exit, given the popularity of other food delivery services such as UberEats and Deliveroo.

Josh Klooger is claiming he was unfairly dismissed as a food delivery rider in the Fair Work Commission.

The global company is based in Berlin and has 14,000 employees, not including delivery riders who are hired as independent contractors.

According to the ABC, it appears Foodora has not informed all of its delivery riders about the decision.

"Foodora will continue to manage legal proceedings locally in Australia and will continue to treat them with the utmost importance", a spokeswoman said on Thursday. In the other case, the Fair Work Ombudsman is suing Foodora for alleged underpaying and sham contracting. The NSW and Federal branches of the ALP have also promised to introduce new regulations, if they win government next year, to ensure online platform workers including food delivery riders have legal rights to fair pay and conditions.

Joshua Klooger, 28, began working for Foodora in Melbourne in 2016.

"They seem to just be focused on ... the business owners and the stakeholders", he told SBS News in June.

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