Deliveroo puts Australian business in administration

Deliveroo is to pull out of the Australian market and has put its local business into voluntary administration.

The delivery firm, which launched in Australia in 2015, said it had struggled to compete with other similar companies.

In an announcement today (16 November) Deliveroo said it could not trade at a sustainable and profitable level in Australia without "considerable financial investment".

Eric French, chief operating officer at Deliveroo, 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."

Deliveroo competes with the likes of UberEats, DoorDash and Menulog in Australia.

It has also faced pressure from the country's new prime minister Anthony Albanese, who said he would work to improve the rights of gig economy workers if he came to power.

Deliveroo said severance payments for employees and compensation for riders and "certain restaurant partners" would be set out as part of the administration process.

The delivery firm is also set to exit the Netherlands at the end of November after claiming it would need substantial investment to keep its market position.

Deliveroo was founded in London in 2013 and its global markets include Belgium, France, Hong Kong, Italy, Ireland, Singapore, Spain, United Arab Emirates and Kuwait.

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