Subscribe Login
Food

Britain's Deliveroo Exits Australia, Citing Tough Competition

By Dave Simpson

British food delivery service Deliveroo has closed its Australian business, citing a tough business environment, as consumers pulled back on takeaways due to rising prices.

Details

Deliveroo, which competes with rivals like Uber Eats and US giant DoorDash, said the market was highly competitive and the company did not hold a broad base of strong local positions.

In the first half of the year the Australian business had represented approximately 3% of Deliveroo's total gross transaction value (GTV), it said.

Get a FREE Digital Subscription!

Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy

"This was a difficult decision and not one we have taken lightly," chief operating officer Eric French said in a statement.

"Our focus is now on making sure our employees, riders and partners are supported throughout this process.”

French said the company had determined that it could not reach a sustainable and profitable scale in Australia without considerable financial investment.

Local subsidiary Deliveroo Australia Pty Limited had been placed into voluntary administration and would permanently cease trading imminently, the company said in the statement.

Sales Growth Warning

London-listed Deliveroo warned last month that sales growth would be at the lower end of its previous guidance, because rising prices were deterring people from ordering takeaways.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

Enjoy a FREE Digital Subscription
Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
Enjoy a FREE Digital Subscription
Enjoy a FREE Digital Subscription
Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
Enjoy a FREE Digital Subscription