The race to the bottom claims another victim with Deliveroo pulling out of Australia after sliding into administration

Food delivery service Deliveroo is no longer taking orders after announcing it has fallen into administration, citing a tough trading environment as consumers pull back on spending amid the rising cost of living. In an email sent to local Deliveroo customers, the UK-headquartered company said it had decided to pull out of Australia. This news comes off the back of Deliveroo announcing earlier this month that they were ceasing operations in the Netherlands on November 30th citing lack of profitability.

“Deliveroo Australia has ceased operations, meaning you can no longer place orders on Deliveroo in Australia,” the email said. “Deliveroo, like all other companies, is now doing business in challenging economic conditions, which requires us to take difficult decisions.”

“In Australia, we have concluded that achieving a sustainable position of leadership in the market is not possible without a disproportionate level of investment which would have highly uncertain returns.”

It has appointed KordaMentha as voluntary administrators. Mark Korda said Deliveroo was "unable to achieve sufficient market share in Australia to develop a sustainable business". The Australian arm of the company had more than 12,000 partner restaurants, employed approximately 120 staff and recently expanded into grocery and liquor delivery.

The green wind jackets and cooler boxes running around the major cities across Australia have been so common it will be strange not to see them any more, our thoughts go out to those impacted by this closure and hope you get back on your feet quickly.

Creditors have been told to visit the administrator's website for more information.