Deliveroo: UK-based food delivery firm quits Australia

Image source, Reuters

Deliveroo is leaving Australia due to tough economic conditions.

The Australian operation is being placed into voluntary administration.

With the country's new government promising to improve gig workers' conditions, Deliveroo has come under increased pressure to treat its 15,000 riders as employees.

Rivals such as Menulog have also competed with it.

Customers who tried to place an order through Deliveroo's app were sent an error message.

It was a difficult decision and we took it very seriously. Eric French, Deliveroo's chief operating officer, said in a statement to investors that they want to thank all their employees, consumers, riders and restaurant and grocery partners who have been involved with the Australian operations.

We want to make sure our employees, riders and partners are supported during this process.

The company promised "guaranteed enhanced severance payments for employees as well as compensation for riders and for some restaurant partners."

Customers reining in their spending and the tightening of regulations are some of the challenges food delivery apps face.

The prime minister of Australia promised to improve the rights of workers if his party came to power.

Gig work has been accused of driving down the wages of a million workers by members of his government.

Deliveroo said last month that it would quit the Netherlands market at the end of the year.

Since the beginning of the year, Deliveroo's shares have lost half of their value.