Foodora to leave Australia amid lawsuits

Roman Schwartz
August 5, 2018

Unions NSW is demanding the federal government set up a compensation fund for Foodora riders with the food delivery service announcing it will wrap up its Australian operations.

Foodora said that the decision to withdraw completely on August 20th was to "shift in focus towards other markets where the company now sees a higher potential for growth".

"The company will fully utilise its resources to ensure employees find suitable alternative roles, as well as support partners and contractors during this transition".

Country manager at Foodora Australia Jeroen Willems said, "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 every day".

Other businesses that offer similar services include Uber Eats and Deliveroo. Foodora will wind down services and close by 20 August.

When Mr Klooger joined Foodora two years ago, he was paid $14 per hour plus $5 per delivery on an older contract.

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Another rider appealed to the Fair Work Commission saying he was unfairly dismissed after speaking out over low pay and poor conditions.

Mr Klooger, who worked in Melbourne, was sacked in March after refusing to hand over control of an encrypted chat group that Foodora workers had used to compare pay and conditions.

"[Foodora] doesn't care at all about the workers who do the hard work".

"As the matters are now before the courts, it is not appropriate for Foodora to make any further comment at this time".

There is a case before the Fair Work Commission questioning whether delivery riders are considered contractors or employees, which would impact on fair pay and protections against unfair dismissal. A spokesperson said the matter is now being dealt with by a Commission Member and no outcome has been reached yet.

The announcement came as Foodora's parent company Delivery Hero said it also planned divestment of its operations in France, Italy, the Netherlands and Brazil, without specifying when it would do so.

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