Deliveroo exits ‘highly competitive’ Australian market
In the first half, Australian businesses only accounted for 3% of Deliveroo’s GTV.
Deliveroo has announced it will stop operations in Australia, citing its highly competitive market.
According to Deliveroo, it does not hold a broad base of strong local position in Australia where it competes with other global players.
In the first half alone, Deliveroo reported that Australian businesses only accounted for 3% of its total gross transaction value (GTV). Australia also negatively impacted its earnings before interests, taxes, depreciation, and amortisation margin by about 30 basis points.
“This was a difficult decision and not one we have taken lightly. We want to thank all our employees, consumers, riders, and restaurant and grocery partners who have been involved with the Australian operations over the past seven years,” Eric French, COO, said.
“Our focus is now on making sure our employees, riders, and partners are supported throughout this process.”
Following its exit, Deliveroo’s subsidiary Deliveroo Australia Pty Limited will permanently cease trading.