Deliveroo quit Australia overnight, ending service for 12,000 restaurants, 15,000 riders

ABC News reported on 16 November 2022 that Deliveroo had suddenly quit Australia, effective immediately, and that KordaMentha had been appointed voluntary administrator of the local arm. The move affected more than 12,000 partner restaurants, 15,000 riders, 120 staff and an unknown number of customers. Deliveroo had operated in Australia since 2015 and recently expanded into grocery and liquor delivery.

Deliveroo blamed 'challenging economic conditions' and concluded that achieving 'a sustainable position of leadership' in Australia was not possible without 'a disproportionate level of investment which would have highly uncertain returns'. Although it started before Uber Eats, ABC said it fell substantially behind, and Menulog and DoorDash also overtook it, leaving it in an unsustainable fourth place. It had already left Germany in 2019 and the Netherlands and Spain earlier in 2022.

The administrator said Deliveroo could not reach sufficient market share and, with the UK parent unwilling to fund it, had 'no alternative but to cease operations immediately'. Employees were terminated that day. Riders, treated as contractors, and restaurants became unsecured creditors who had to lodge proof-of-debt forms and might not be paid in full. The Transport Workers' Union said the exit showed the need for gig-worker reform.

More than 12,000 partner restaurants and 15,000 riders lost the service; about 120 staff were made redundant on the day.

Deliveroo started ahead of Uber Eats in Australia but fell substantially behind it.

Menulog and DoorDash also overtook it, leaving it in fourth place in a crowded market.

The parent concluded that leadership would need a disproportionate level of investment with highly uncertain returns.

The parent would not provide financial support, forcing an immediate cessation of operations.

An early mover that lets rivals overtake it ends up needing disproportionate investment to catch up; exits then happen with no notice.

Administrators worked to calculate and secure staff entitlements, and said they would run an orderly wind-down. Customer accounts stayed open for six months so users could download their data. Riders, who were contractors, could keep their company kit but would claim as unsecured creditors.