Published: Sun, August 05, 2018
Business | By Eloise Houston

Foodora Australia confirms it is shutting down

Foodora Australia confirms it is shutting down

"The company, which has been a part of the Australian market since 2015, will start winding down services and close by August 20th, 2018".

Foodora Australia employs 41 full-time staff.

In the other case, the Fair Work Ombudsman is suing Foodora for alleged underpaying and sham contracting.

Foodora Australia country manager Jeroen Willems said that "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".

Food delivery company Foodora has announced they will withdraw from the Australian market in just over two weeks. According to John Chessal, a deliver rider, Foodora's closing was "nice news".

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.

The Transport Workers' Union has called on the Federal Government to require Foodora to set up a fund to compensate riders.

"The government's actions are sadly not surprising, given the Workplace Minister Laundy is on the record as saying the on-demand economy is "working exactly as it was created to function", he said.

Also Thursday it said in Berlin that it planned to divest itself of operations in France, Italy, the Netherlands and Brazil while buying online food delivery operations in Romania and Argentina and taking a stake in a Spain-based service that also operates in France and Italy.

The company says it will continue to deal with its legal battles in Australia.

TWU National Secretary Tony Sheldon said Foodora, like other food companies, had denied riders fair rates, superannuation, workers compensation and annual leave.

Whereas Uber appeared for years to conquer nearly all before it, the following wave of gig economy proponents are finding the going much tougher as governments react quicker.

As more workers turn to the gig economy, it's important to know what fields will help you land the highest freelance salary.

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