Back in June it was revealed that bicycle-based online food delivery company, Foodora, faced thousands of dollars in fines after it allegedly put riders and a driver on sham contracts.
Foodora, along with UberEats and Deliveroo, is one of the mobile delivery platforms that was found to be systemically exploiting migrant workers, according to a recent university study.
Now Foodora has announced it will close its Australian operations on 20 August. From The Australian:
Foodora Australia manager, Jeroen Willems said that the company will provide support to employees, contractors and partners impacted by the decision. Foodora Australia employs 41 full-time staff.
“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,” he said in a statement.
“It has been a privilege to bring the food you love right to your door.”
Foodora only had an estimated 5.3% share of the online food delivery market, behind rivals Deliveroo and Uber Eats, so it won’t make a whole lot of difference. But hopefully it serves as a warning shot and encourages a clean-up of the industry.
