The bright pink packs of food delivery business Foodora will be gone from Australia by August 20, with the company announcing today that it is quitting the region after just three years “in response to a shift in focus towards other markets where the company currently sees a higher potential for growth”. The Australian arm of the German business, which operates in nine other countries, including Italy, France, Sweden and Canada, is leaving just a legal action by employment watchdog, the Fair Work Ombudsman (FWO), got underway over alleged sham contracts for delivery drivers The FWO alleges Foodora Australia Pty Ltd breached sham contracting laws by misrepresenting to them that they were independent contractors. An initial hearing was held in the Federal Court in Sydney on July 10. A case management hearing is listed for September 4. The company is also defending an unfair dismissal case in the Fair Work Commission. Berlin-based Foodora launched in Australia in March 2016 after acquiring a local delivery business, Suppertime, in late 2015 and rebranding it. The business operates in Sydney, Melbourne and Brisbane and has around 2,500 restaurants on its books including Din Tai Fung, Luke Mangan’s Chicken Confidential, Subway and KFC. The business has been in a three-way tussle in the food delivery business with Uber Eats and the UK business Deliveroo. Foodora Australia country manager Jeroen Willems said the company will commence winding down operations immediately and close by August 20. It will “ensure employees find suitable alternative roles, as well… [Read full story]
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