Business and Operations
Foodora to close its business in Canada
April 29, 2020 By Bakers Journal
For bakeries and restaurants using delivery services, take note: foodora Inc. in Canada announced a plan to close its business after five years of operation. Canada is a highly saturated market for online food delivery and has lately seen intensified competition.
The press release stated, “foodora has unfortunately not been able to reach a strong leadership position, and has been unable to reach a level of profitability in Canada that’s sustainable enough to continue operations.”
“I’m very proud of what foodora has accomplished over the last few years. I’ve been able to witness food delivery grow from its infancy into what it is today, and helping to build a brand I’m proud of. However, there’s been some challenges along the way. We’re faced with strong competition in the Canadian market, and operate a business that requires a high volume of transactions to turn a profit. We’ve been unable to get to a position which would allow us to continue to operate without having to continually absorb losses,” said David Albert, managing director of foodora Canada.
The beleaguered company had faced issues with its working conditions, and its couriers had rallied for unionization in February.
foodora Canada has filed a notice of intention to make a proposal; the details of the proposal have yet to be determined. The business will continue to run until the end of the day on May 11, 2020. foodora Canada’s employees have received their notice today and will continue to be paid as stipulated in their contractual agreements. The rider community has also been given notice period of termination.
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