Deliveroo announces it is ‘leaving Australia’: Food delivery giant suddenly goes into administration – here’s what it means for customers

Deliveroo may be named after an iconic Australian marsupial, but the food delivery giant will no longer be hopping meals across its streets.

The company on Wednesday afternoon suddenly announced it had gone into voluntary administration and would shut down all operations in Australia. 

Deliveroo told customer in an email that they would no longer be able to place orders on the app in Australia.

Customers will still be able to access their accounts and download their customer orders and information for six months.

Opening the app, where a list of restaurants would usually appear, is just an error telling customers ‘there’s a problem’ and to try again later. 

Financial documents show the firm was put into administration on Wednesday with KordaMentha Restructuring appointed to take over.

Administrators Craig Shephard, Michael Korda, and Andrew Knight will either sell Deliveroo to a new owner, or liquidate it and sell it for parts.

How much debt Deliveroo’s Australian arm is in, and who stood to lose money they were owned, was not immediately known.

Deliveroo told customers pulling out of Australia was a ‘difficult decision’ but it was ‘doing business in challenging economic conditions’.

‘We always aim to deliver the best possible service for our consumers wherever we operate, and if we cannot do that we will be prepared to review our position,’ it said. 

‘In Australia, we have concluded that achieving a sustainable position of leadership in the market is not possible without a disproportionate level of investment which would have highly uncertain returns.’

Deliveroo at the end of last year had just 11.7 per cent of the Australian food delivery market, behind dominant market leader UberEats on 52.9 per cent and MenuLog with 19 per cent.

More to follow 

Deliveroo’s email to Australian customers

Dear Customer,

We have today made the sad announcement that we are leaving Australia. This has been a difficult decision to make,’ the statement said. 

We have enjoyed serving you the amazing food that Australia is known for, working with thousands of brilliant restaurants and riders.

Deliveroo, like all other companies, is now doing business in challenging economic conditions, which requires us to take difficult decisions. 

‘We always aim to deliver the best possible service for our consumers wherever we operate, and if we cannot do that we will be prepared to review our position.

‘In Australia, we have concluded that achieving a sustainable position of leadership in the market is not possible without a disproportionate level of investment which would have highly uncertain returns.

On the basis of this decision, Deliveroo Australia has been placed into administration. The director of Deliveroo Australia has appointed Michael Korda, Andrew Knight and Craig Shepard of KordaMentha as voluntary administrators. To find out more, including information for creditors, please visit click here. You will receive further communications from the Administrators shortly.

What this means for you

Deliveroo Australia has ceased operations, meaning you can no longer place orders on Deliveroo in Australia.

You will still be able to access your customer account for up to 6 months from this date onwards. After this period your customer account will be closed. Within this period while your account is open, you can download your customer information.

Thank you for ordering with Deliveroo.

For any further information, please visit the administrators’ website at: https://kordamentha.com/creditors

We want to thank you again for using Deliveroo.

The Deliveroo Team

 

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