Foodora stops food delivery services in Australia to focus on other areas

Foodora stops food delivery services in Australia to focus on other areas

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

Foodora is quitting Australia.

The food delivery company Foodora is pulling out of Australia, and will leave Australian shores by August 20.

The company now competes with Uber Eats, which launched in Australia in 2016, and Deliveroo, which opened its first Australian office in late 2015.

"There has been broad community and academic debate about the status of "models" using smartphone-driven technology as a means for deploying a workforce that delivers food to consumers from restaurants and fast food outlets", Fair Work Ombudsman Natalie James said at the 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. According to John Chessal, a deliver rider, Foodora's closing was "nice news. These people have rent, bills and tuition fees to pay", Mr Sheldon said.

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Also Thursday it said in Berlin that it planned to divest itself of operations in France, Italy, the Netherlands and Brazil while buying online food delivery operations in Romania and Argentina and taking a stake in a Spain-based service that also operates in France and Italy.

The workplace cop sued Foodora earlier this year alleging it was incorrectly classifying employees as "independent contractors".

It was backed on Friday by the state's peak union body which wants the Turnbull government to force Foodora to set up a workers compensation fund.

The company says it will continue to deal with its legal battles in Australia.

The ombudsman, which filed the legal action in June on behalf of three workers in 2015, alleged that the company "engaged in sham contracting activity that resulted in the underpayment of workers".

One involves claims of unfair dismissal by former employee Josh Klooger, who claimed that when he complained about workers being paid as little as $8 an hour, he was sacked, the ABC reported.

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