UK-based food delivery service Deliveroo announced on November 16 it has decided to end its operations in Australia, citing a “highly competitive” market for its localised market withdrawal.
The British company said in a statement on Wednesday that its subsidiary in Australia, Deliveroo Australia Pty Limited (DAPL), has been placed into voluntary administration by its director and will permanently cease trading imminently.
Deliveroo said its decision to leave Australis was driven by the company’s approach to capital allocation, adding it remains committed to driving growth and delivering on its path to profitability while aiming to have strong, profitable businesses in each of the markets in which it operates.
“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,” said Eric French, chief operating officer.
“Our focus is now on making sure our employees, riders and partners are supported throughout this process.”
Deliveroo went on to describe the Australian market as “highly competitive with four global players and said it “does not hold a broad base of strong local positions.”
In the first half of 2022, Deliveroo’s Australian business represented approximately 3 percent of the company’s total Gross Transaction Value (GTV) and negatively impacted the company’s adjusted EBITDA margin by approximately 30 basis points.
Deliveroo, which had operated in Australia since 2015, accrued some 12,000 partner restaurants, 15,000 riders and 120 staff during its seven-year tenure.
Michael Korda, Andrew Knight and Craig Shepard of KordaMentha have been appointed as voluntary administrators of DAPL.