Deliveroo has decided to withdraw operations in Australia that have been open since 2015 due to an insufficient market share. Deliveroo Australia partnered with 12,000 restaurants and 15,000 riders, and employed 120 staff.
“Deliveroo was unable to achieve sufficient market share in Australia to develop a sustainable business. To do so would require significant ongoing investment in the Australian market. Given this, Deliveroo Australia’s UK parent has advised that it has decided to cease funding Deliveroo Australia. Without ongoing funding, the director of Deliveroo Australia resolved to place the company into administration,” said Michael Korda, one of Deliveroo’s Voluntary Administrators.
“Administrators had no alternative but to cease operations immediately in the absence of financial support. Our priority is to execute an orderly wind-down of the Australian operations to achieve the best outcome for all stakeholders.”
The first creditors meeting for Deliveroo Australia will be held on November 28. Deliveroo also recently announced its departure from the Dutch market.
“After consulting with employees and riders, Deliveroo has established that reaching and keeping a top market position in the Netherlands would require unreasonable investment with an uncertain long-term return,” said the company in a statement.
