Foodora to leave Australia

ABC News is reporting that Foodora is leaving Australia.

ABC News is reporting that some riders are actually happy about the closure.  Issues with medical support, sham contracting and unfair dismissal have created unrest with some riders.

Foodora Australia
Foodora has announced that it is leaving Australia

The Sydney Morning Herald is stating that Jeroen Willems, the country Manager for Foodora will start winding down services and close by August 20th, 2018.

Foodora still has 2 cases that it is defending in Australia, one for unfair dismissal and another for sham contracting.  The unfair dismissal case is a test case launched by the Transport Workers Union on behalf of a former Foodora deliver rider, Josh Klooger.  Foodora believes that Mr Klooger is an independent contractor.

This is a set back for Foodora parent, Delivery Hero, which itself left Australia in 2016.  In September 2015, Foodora purchased Suppertime in Australia which it rebranded to Foodora in May.

The fact that Foodora did not complete a strategic divestment suggests that it had very small revenues in Australia.

What does it mean for your Restaurant?

Not much.  As far as Delivery aggregators, UberEats and Deliveroo have been strong number 1 and number 2 and we thought that Foodora would leave a lot earlier.  Along with UberEats and Deliveroo, we believe that the only real innovation that they have made is the ability to pay below the award rate for their riders.  This isn’t a great innovation and is something that the courts are looking at closely.

For Restaurants looking for a Foodora Alternative, try the Free Restaurant OnLine Ordering System.  It is free with no per month or per order charges and gives you the customer phone number and email address.  It’s the way that online ordering should always be.

 

 

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