Deliveroo Considering Ending Its Services In Spain

By Dave Simpson
Deliveroo Considering Ending Its Services In Spain

Deliveroo is considering ending its services in Spain due to high costs associated with running operations in the country to focus on other markets and expand in new and existing cities, the food delivery firm has said.

"Disproportionate Level Of Investment"

"The company has determined that achieving and sustaining a top-tier market position in Spain would require a disproportionate level of investment with highly uncertain long-term potential returns," Deliveroo said in a statement.

Three Months To Convert Couriers Into Staff Workers

In May, Spain's government gave food delivery companies three months to convert their couriers into staff workers, one of the first laws in Europe regarding gig-economy workers' rights.

Subject To Consultation With Employees And Riders

The proposal is subject to consultation with employees and riders who will be affected by the end of operations, Deliveroo said, adding that Spain accounted for less than 2% of its overall transaction values in the first half of 2021.

Fourth Biggest Market Share

The London-listed company ranks fourth in a list of food delivery firms with the biggest market share in Spain, below Uber Eats, Just Eat and Glovo, according to a report by financial advising firm Fintonic in August last year.

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