UK- based Deliveroo Quits Australia
UK food delivery app Deliveroo announced that it will no longer operate in Australia due to the current economic conditions.
The company’s Australian subsidiary, which opened in 2015, is being placed into voluntary administration.
Deliveroo, a delivery service employing 15,000 people, is facing more demands to change its policy and employ riders as gig workers with improved benefits.
It has also had competition from rivals such as Uber Eats and Menulog.
Although food delivery apps experienced a popularity boost during the pandemic, customers have since become more budget-conscious and several countries have implemented new restrictions.
Even in the UK, Deliveroo has continued to struggle with customer acquisition and retention in Q3 after deciding to reduce its consumer marketing spend in Q2. Following the move, Deliveroo’s number of active customers in the UK decreased a bit in the second quarter when compared to those in the first quarter.
Deliveroo also announced last month that it planned to cease operation in the Netherlands market by the end of November.
Deliveroo’s London-listed shares have plummeted by nearly half since the start of 2022.
News Credits: Deliveroo: UK-based food delivery firm quits Australia
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