Deliveroo has gone into voluntary administration in Australia, citing poor profitability in a highly competitive market.
In a statement, Deliveroo said there were four global players in Australia and Deliveroo did not hold a “broad base of strong local positions”.
The company determined it could not reach a sustainable and profitable scale in Australia without considerable financial investment, and the expected return was not commensurate with Deliveroo’s risk/reward thresholds.
Deliveroo instead decided to stop operating in Australia, with its subsidiary placed into voluntary administration by its director.
It will permanently cease trading imminently.
“This was a difficult decision and not one we have taken lightly,” chief operating officer Eric French said on Wednesday.
“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.”
More to come
Story Credit: news.com.au