Food delivery service Foodora to exit Australia

by Frankie Norman August 5, 2018, 4:08
Food delivery service Foodora to exit Australia

Foodora said that the decision to withdraw completely on August 20th was to "shift in focus towards other markets where the company now sees a higher potential for growth".

Food delivery app, Foodora - the pink one - has confirmed they're wrapping up business in Australia at the end of the month because it wants to explore opportunities in other markets. One union has condemned the company for leaving while a dispute over millions of dollars in back pay continues.

A survey of 17,000 Australians over nearly two decades has found "there is no evidence of any growth in the use of independent workers in Australia", despite widespread fears of companies such as Uber and AirTasker flipping a century-old industrial relations model.

The company, in a statement released on Thursday, said it would "cease operations in response to a shift in focus towards other markets where the company now sees a higher potential for growth".

"There is a real fear these cases will be successful against Foodora but Foodora won't have the money in the Australian company to pay redundancies", he told AAP on Friday. In the other case, the Fair Work Ombudsman is suing Foodora for alleged underpaying and sham contracting.

Foodora Australia country manager Jeroen Willems said that "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".

Josh Klooger is claiming he was unfairly dismissed as a food delivery rider in the Fair Work Commission.

He called on the federal government to force Foodora to compensate workers for "18th-century conditions".

Foodora denied the union's claim, insisting it would continue its legal battles in Australia and was also divesting from France, Italy and the Netherlands.

But Foodora will still need to defend two lawsuits locally.


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