Just In: Foodora Quits Australia

Just In: Foodora Quits Australia

Just In: Foodora Quits Australia

It is understood the decision to leave the Australian market was in response to a "shift in focus to other markets" within its global parent company Delivery Hero.

Country manager at Foodora Australia Jeroen Willems said, "we wish to express our gratitude to all of our customers, contractors and employees for their dedication to Foodora Australia, and for allowing us to be a part of their everyday".

Foodora only had an estimated 5.3% share of the online food delivery market, behind rivals Deliveroo and Uber Eats, so it won't make a whole lot of difference.

In the company's statement, Foodora added that it will ensure that its employees will "find suitable alternative roles, as well as support partners and contractors during this transition".

According to the ABC, it appears Foodora has not informed all of its delivery riders about the decision.

The case could help set a precedent for whether food delivery riders are really employees entitled to fair pay, conditions and protections against unfair dismissal under the Fair Work Act.

Another rider appealed to the Fair Work Commission saying he was unfairly dismissed after speaking out over low pay and poor conditions. Other gig economy companies include Uber, Uber EATS, Deliveroo and Airtasker.

Mr Klooger claimed newer riders were paid rates of $7 per delivery and no hourly rate.

In light of these issues, Foodora spokesperson told the ABC that "Foodora will continue to manage legal proceedings locally in Australia and will continue to treat them with the utmost importance".

Joshua Klooger, 28, began working for Foodora in Melbourne in 2016.

In recent months, Foodora has been at the fore of a public discussion about the so-called gig economy: the collection of businesses that pay their workers per individual job, and often require them to bring their own bike/motorbike/car to work.

His campaign attracted the attention of the Transport Workers Union who, on Thursday, accused Foodora of abandoning Australia while owing millions of dollars in back pay.

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