Deliveroo’s sudden exit from Australia is being blamed on a ‘highly competitive local market’ dominated by Uber Eats and Menulog who crushed their rival with star-studded ad campaigns.
The food delivery service on Wednesday made the surprise announcement it was going into voluntary administration – a decision affecting 14,000 restaurants, 14,000 riders and 150 office staff.
Although Deliveroo has promised riders up to four weeks compensation, the independent contractors have voiced their anguish at receiving the devastating news at 4:50pm, just before starting their evening shift and five weeks out from Christmas.
One rider Rodrigo Burgos-Moor, came to Australia from Argentina said he has been left ‘anxious and nervous’ after learning he’s out of a job.
Deliveroo’s sudden exit from Australia is being blamed on a ‘highly competitive local market’ dominated by Uber Eats and Menulog who crushed their rival with star-studded ad campaigns. (Kim Kardashian pictured in Uber Eats ad)
Menulog splashed on a catchy jingle by Snoop Dogg before replacing him this year with another snappy jingle from singer Katy Perry (pictured) in their latest iteration of their ‘Did Somebody Say?’ campaign
‘I feel really bad and disappointed about the way they managed the situation,’ Rodrigo Burgos-Moor told A Current Affair.
‘I already feel myself struggling, anxious and nervous about the situation and it’s only been one day,’ he said.
‘I’ll look for other options, other jobs to try and keep up the same income.’
Burgos-Moor estimated he worked between 30 to 40 hours a week for Deliveroo.
Deliveroo at the end of last year had just 11.7 per cent of the Australian food delivery market, behind UberEats with 52.9 per cent and MenuLog with 19 per cent.
Big-spending ad campaigns helped drive the final nail in the coffin.
Although Deliveroo has promised riders up to four weeks compensation, the independent contractors have voiced their anguish at receiving the news at 4:50pm, just before starting their evening shift and six weeks out from Christmas
Uber Eats’ ‘Tonight I’ll be eating’ campaigns have run since 2017 and featured numerous celebrities from actors to sports players, chefs, comedians and public figures.
The likes of Kim Kardashian, Magda Szubanski, Sacha Baron Cohen, Paris Hilton and Australian tennis players Ash Barty and Nick Kyrgios are just some of the big names who have featured in Uber Eats ads.
While Menulog splashed on a catchy jingle by Snoop Dogg before replacing him this year with another snappy jingle from singer Katy Perry in their latest iteration of their ‘Did Somebody Say?’ campaign.
The celebrity endorsements made both Menulog and Uber Eats household names and ultimately pushed Deliveroo out of the Australian market.
Menulog’s campaign with US rapper Snoop Dogg (pictured) has helped the food-delivery service break into the Australian market
‘In Australia, the market is highly competitive with four global players, and Deliveroo does not hold a broad base of strong local positions,’ Deliveroo said in a statement on Wednesday.
The global company, headquartered in the UK, said its Australian business was just three per cent of its total revenue and was a drag on its profit.
‘Given this position, Deliveroo has decided to end its operations in Australia.’
But there is a glimmer of hope for their thousands of riders who will receive two weeks’ compensation will be paid within the next seven days, with a further two weeks’ pay pending a vote in mid-December.
‘The pay will be based on each individual’s average earnings in the last 12 months,’ Deliveroo said.
‘For a rider to be eligible they must have completed one order in the last three months.’
Uber Eats’ ‘Tonight I’ll be eating’ campaigns have run since 2017 and featured numerous celebrities from actors to sports players, chefs, comedians and public figures (pictured, Ash Barty and Sacha Baron Cohen)