Food delivery company Foodora has confirmed it will cease its Australian operations on 20 August.
In a statement, the company explained it is exiting the market to shift its focus towards other markets where it currently sees a higher potential for growth.
“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,” said Jeroen Willems, country manager at Foodora Australia.
Foodora said it will “fully utilise its resources to ensure employees find suitable alternative roles” and “support partners and contractors during this transition”.
In a statement obtained by the ABC, Foodora informed delivery riders shifts will be available as normal until 10 August, before a “wind down of services” until it terminates all contractor agreements on 20 August.
The news comes after the Fair Work Ombudsman launched legal action against the delivery company in June, alleging it engaged in sham contracting activity that resulted in the underpayment of workers. An unfair dismissal case against Foodora is also ongoing.
A Foodora spokesperson told the ABC it will “continue to manage legal proceedings locally in Australia and will continue to treat them with the utmost importance.”
The company currently competes with Uber Eats, which launched in Australia in 2016, and Deliveroo, which opened its first Australian office in late 2015.