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Australia – Deliveroo closing Australian operations amid pressure to treat riders as employees

17 November 2022

Work services platform Deliveroo, which provides food delivery, is shutting down its Australian operations. Australia’s Transport Workers Union announced it is reaching out to Deliveroo’s administrators regarding workers’ entitlements and data protection.

“Deliveroo has always been the outlier of the gig industry in Australia, railing against reform supported by Uber and DoorDash to level the playing field for companies while lifting standards for workers under deadly pressures,” according to a statement by the union. TWU National Secretary Michael Kaine said “Workers must be the priority for administrators while the federal government must urgently act on its commitment to gig reform and fair standards for all transport workers.”

The BBC reported Deliveroo has been under pressure to treat its 15,000 riders as employees and has faced competition from rivals such as Uber Eats and Menulog.

London-headquartered Deliveroo announced the closure of its Australian operations on its website.

“Deliveroo has taken the difficult decision to leave Australia,” according to the company’s Australian website. “We have been proud to bring so many people amazing meals from Australia’s great restaurants over the years. We want to thank everyone we have worked with. KordaMentha has been formally appointed as administrators for this process.”

The Transport Workers Union, in its statement, likened Deliveroo’s departure from the Australian market to that of Foodora. The union said that in 2018 Foodora’s administrators found its workers had been misclassified and were in fact employees, with parent company Delivery Hero later paying AUD 3 million (USD 2million) in back pay.