foodora canada

Foodora restaurant delivery app says they're shutting down in Canada

Restaurant delivery app Foodora says they're ceasing all operations in Canada within the next couple of weeks.

You'd think all delivery apps would be experiencing more success than ever right now, but apparently Canada's food delivery market is oversaturated and Foodora just can't compete.

"Canada is a highly saturated market for online food delivery and has lately seen intensified competition," says a press release from the company.

"Foodora has unfortunately not been able to reach a strong leadership position, and has been unable to reach a level of profitability in Canada that's sustainable enough to continue operations."

Foodora Canada's employees and rider community have received their notice and notice period of termination, and will continue to be paid according to contract stipulations while the app is still running.

Foodora is a subsidiary of Delivery Hero, has 3,000 restaurant partners in 10 cities across Canada and has been in business for five years.

The German company first entered the Canadian market when they acquired Toronto delivery startup Hurrier.

"We're faced with strong competition in the Canadian market, and operate a business that requires a high volume of transactions to turn a profit," says David Albert, Managing Director of Foodora Canada.

"We've been unable to get to a position which would allow us to continue to operate without having to continually absorb losses."

Foodora will be ceasing operations effective the end of day on May 11.

"None of this would have been possible without the dedication of our employees, riders and restaurants," says Albert. "I thank them for the continued support over the last five years. Supporting them during this transition phase is our main priority."

Lead photo by

DKLo


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