Marketplace
Just got this email from Deliveroo:
We have today made the sad announcement that we are leaving Australia. This has been a difficult decision to make. 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
Notably, Deliveroo is not refunding anyone with account credits or gift cards, and if you have these you are now an unsecured creditor:
https://kordamentha.com/getmedia/282f335e-a43a-4c7c-8162-c8a…
19. I have a credit on my customer account. Will it be refunded?
Customers with credits on their accounts will not be refunded for this amount. Such customers are deemed to be unsecured creditors in the Administration and should submit a Proof of Debt form. Further information on how to lodge a Proof of Debt form will be provided in due course.
26. Will gift cards be honoured?
As the Company ceased trading immediately, gift cards cannot be honoured or refunded. Customers with unexpired/unused gift cards are deemed to be unsecured creditors in the Administration and should submit a Proof of Debt form. Further information on how to lodge a Proof of Debt form will be provided in due course.
I note that Deliveroo plc (the UK-based parent company of Deliveroo Australia Pty Ltd) gave customers from The Netherlands 42 days notice before ending their operations: https://corporate.deliveroo.co.uk/media/deliveroo-announces-…
Seems pretty disgraceful to rug-pull all their Australian customers, employees, contractors and restaurant partners like this when clearly they didn't have to for NL. They should probably take "roo" out of their name..
I guess the business model of losing money on every sale, but making up for it in volume never took off.
Good.
It's about time we expected companies to (shock) make money and have sustainable business models. That sweet sweet pool of dumb venture capital money has dried up, and we're now seeing who is left floundering.