UK based Deliveroo announced that it has decided to end its operations in Australia. This decision is driven by the Company’s disciplined approach to capital allocation. Management is committed to driving growth and delivering on its path to profitability while aiming to have strong, profitable businesses in each of the markets in which it operates, built on the foundation of leading hyperlocal market positions.
The company’s Australian operation, which launched in 2015, is being placed into voluntary administration. Deliveroo has come under increasing pressure to treat its 15,000 riders as employees, with the country’s new government pledging to improve gig workers’ conditions.
It has also faced competition from rivals such as Uber Eats and Menulog. Deliveroo said it had stopped accepting orders through its app, with customers receiving an error message if they tried to place an order. During Australia’s election campaign this year Anthony Albanese, who is now the country’s prime minister, said he would work to improve the rights of workers if his party came to power.
Last month, Deliveroo also announced that it planned to quit the Netherlands market at the end of November. Deliveroo’s London-listed shares have lost around half of their value since the start of this year.