Shock exit with Foodora to quit Australia this month
German food delivery company has announced it will close its Australian operations this month.
It has lasted less than three years in Australia after taking over local delivery start-up Suppertime in 2015.
In a statement Foodora said the decision to quit the Australian market was “in response to a shift in focus towards other markets where the company currently sees a higher potential for growth”.
“We wish to express our gratitude to all of our customers, contractors and employees for their dedication to Foodora Australia, and for allowing us to be a part of their everyday,” said Foodora Australia country manager Jeroen Willems. “It has been a privilege to bring the food you love right to your door.”
Although the company’s 41 staff and 1000 riders were only informed of the shock news yesterday, some saw the writing on the wall, with the company battling court cases brought by the Fair Work Commission and the Fair Work Ombudsman.
Many observers were unhappy with the way the company classified its workers as “independent contractors”, which significantly curtails the riders’ benefits such as superannuation and leave entitlements.
The Transport Workers Union (TWU) has accused Foodora of ceasing its Australian operations to “avoid responsibility for paying its riders millions of dollars in backpay as a result of wage theft”.
“It is imperative that Foodora pays compensation to its riders,” said TWU National Secretary Tony Sheldon. “It is a disgrace that it has given them notice of just one week of ‘normal’ work. These people have rent, bills and tuition fees to pay.”
The exit by Foodora leaves UberEats and Deliveroo, who also utilise the “gig economy” model, to take up the slack.
Source: Sheridan Randall, 3rd August 2018
