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Bloomberg
Deliveroo Plc is closing its Australian business after it failed to win enough orders competing against food-delivery rivals including Uber Eats and Menulog.
Deliveroo Australia Pty has been put into administration and will stop trading imminently, Deliveroo said.
“The company cannot reach a sustainable and profitable scale in Australia without considerable financial investment,†it said. The expected returns are too low, the company said.
After a pandemic-fuelled surge, Deliveroo has lowered the top-end of its growth outlook. Australia accounted for about 3% of company’s total gross transaction value. Deliveroo said it plans to give enhanced severance payments to staff in Australia, and compensation to riders and some restaurants.
The company last month announced plans to exit the Dutch market at the end of November.