A sudden announcement dropped in subscribers’ inboxes this afternoon with a statement confirming that the company will “permanently cease trading immediately”.
By the time the statement landed, the mobile app had already stopped taking orders.
A spokesperson said that the company was aiming to take a more “disciplined approach to capital allocation”, noting the Australian market is “highly competitive” and Deliveroo “does not hold a broad base of strong local positions”.
Chief operating officer Eric French said the “difficult decision” was “not 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,” he said.
The Transport Workers’ Union lashed Deliveroo for what it described as a “sudden and cowardly act” and has called for delivery drivers to be supported and for the federal government to reform the gig economy sector.
“This will be a shock to the thousands of food delivery riders who rely on Deliveroo for income,” national secretary Michael Kaine said.
“The TWU has sought urgent consultation with administrators on what entitlements might be clawed back for food delivery riders who stand to lose their jobs in the blink of an eye.”
In announcing the company was going into administration, French said Deliveroo would work to support everyone impacted by the collapse.
“Our focus is now on making sure our employees, riders and partners are supported throughout this process,” he said.
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The company’s subsidiary in Australia, Deliveroo Australia Pty Limited (DAPL), has been placed into voluntary administration.
The company currently employs around 15,000 riders in Australia, and will now leave thousands of local restaurants in the lurch.
It is not yet known if customers’ membership fees will be reimbursed.
