Deliveroo is leaving the Australian market, citing ‘challenging economic conditions’ and fierce competition.
The delivery giant said it had been a “difficult decision”, but “achieving a sustainable position of leadership in the market is not possible without a disproportionate level of investment which would have highly uncertain returns”.
“Deliveroo, like all other companies, is now doing business in challenging economic conditions, which requires us to take difficult decisions. We always aim to deliver the best possible service for our consumers wherever we operate, and if we cannot do that we will be prepared to review our position,” the company said to customers.
Eric French, Chief Operating Officer, said:
“This was a difficult decision and not one we have taken lightly. We want to thank all our employees, consumers, riders and restaurant and grocery partners who have been involved with the Australian operations over the past seven years. Our focus is now on making sure our employees, riders and partners are supported throughout this process.”
Customers are now being shown an error message if they try to place an order according to reports.
The firm competes with the likes of Uber Eats, Menulog, and DoorDash down under, and like many gig economy firms, has faced significant challenges opening in Australia.
The Company’s subsidiary in Australia, Deliveroo Australia, has been placed into voluntary administration.