The prominent British food delivery company Deliveroo has expressed their plans to explore other more promising markets, following an announcement earlier that it would completely pull out of Germany, AFP reported on Monday August 12th.
According to the company’s’ spokesman, an announcement was made via email to customers earlier, stating that, starting August 16th, the company will cease delivery for Germany, and that it would shift focus to other countries in both Europe and Asia. However, in a later statement, the company stated it would not abandon the German market for long and that it might return in the future.
Deliveroo allows users to order food online, placing their order at the kitchen and summoning a bicycle-mounted worker to deliver it from the restaurant to their door. Ever since it initiated operations in Germany in April 2015, it has amassed 1,100 freelance riders and around 100 staff and temporary employees.
The Dutch service, Lieferando, operated and owned by Dutch firm Takeaway, plans to take further dominance of the business as Deliveroo’s departure leaves the market wide open.
In an attempt to compensate both customers and workers, Deliveroo explained that it would pay restaurant owners, riders and its own employees in Germany with compensation packages, while customers would be paid back outstanding credit on their accounts.
Securing a sum of $575 million (€510m) in new funding from investors, including Amazon last May, has not deterred the company’s’ plan to depart Germany. This surprised both customers and business owners, who failed to foresee the withdrawal who had understood the previous withdrawal from a string of smaller German towns to focus on the biggest cities like Berlin, Hamburg and Frankfurt.
Elsewhere in Europe, last week, Deliveroo faced protests and a call for a one-day boycott from French delivery riders, who said a new pay scale would mean lower wages for their work, according to AFP