Foodora Australia confirms it is shutting down

05 August, 2018, 10:07 | Author: Billie Castillo
  • Josh Klooger

The company, in a statement released on Thursday, said it would "cease operations in response to a shift in focus towards other markets where the company now sees a higher potential for growth".

Online food-delivery service Foodora is leaving the Australian market.

In a statement obtained by the ABC, Foodora informed delivery riders shifts will be available as normal until 10 August, before a "wind down of services" until it terminates all contractor agreements on 20 August.

The Fair Work Ombudsman has also launched legal action in the Federal Court that relates to two bicycle delivery riders who delivered food and drinks to customers in Melbourne and a delivery driver who delivered food and drinks by auto to customers in Sydney.

Foodora Australia manager, Jeroen Willems said that the company will provide support to employees, contractors and partners impacted by the decision.

Foodora will wrap up its Australian operations by the end of the month amid accusations that it's abandoning its obligations to workers owed back pay.

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"It has been a privilege to bring the food you love right to your door", he said. As well as its on-staff employees, the company has 1000 independent contracts and more than 2500 restaurants on its books.

The workplace cop sued Foodora earlier this year alleging it was incorrectly classifying employees as "independent contractors". On 26 July, Justice Perram ordered foodora to file and serve its defence by 31 July, and the next step is a case management hearing scheduled for 4 September.

Foodora is facing claims of unfair dismissal in front of Australia's Fair Work Commission this week ahead of a Federal Court case dealing with its alleged underpayment of workers.

"Interestingly, the ABC were the ones to break the news to an actual Foodora driver who said: "...this is a nice news.

"Foodora will continue to manage legal proceedings locally in Australia and will continue to treat them with the utmost importance", a spokeswoman told AAP on Thursday.

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