Deliveroo loses appetite for German takeaway market

Monday 12th August 2019 16:30 BST

The decision affects 100 staff - including employees, contractors and agency workers - and 1,100 self-employed riders in five cities.

It comes as the London-based business faces tough competition, with rivals Just Eat and finalising a merger which will make them market leaders in Britain, Germany, the Netherlands and Canada.

Deliveroo was founded in 2013 and today operates in more than 500 towns and cities globally from Australia and Kuwait to Ireland and Italy.

It launched in Germany in 2015, with the business currently covering Berlin, Munich, Cologne, Hamburg and Frankfurt.

But Deliveroo said it was now looking to focus on other markets in Europe and beyond, adding that it was not ruling out returning to Germany in the future.

The company said: "We are grateful to our extremely talented employees for their commitment to bringing fantastic foods to people's homes, and they will be supported in this period.

"Deliveroo will continue to grow and invest in markets across the world, seeking to become the world's definitive food company."

The company said riders would receive goodwill payments worth about four weeks' pay as well as any outstanding fees while employees would receive their statutory notice as well as an additional payment dependent on their length of service.

Deliveroo - whose global rivals in the food delivery market include UberEats - recently announced plans for aggressive expansion in the UK.

Earlier this year, it revealed it was being backed by retail giant Amazon as part of a £450m funding round to help its expansion.

The investment is being investigated by the UK's competition regulator.

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