Foodora Canada Closes in “Highly Saturated Market” and “Increased Competition”

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Foodora will cease operations across Canada next month due to a competitive online food delivery market, the company said.

“Canada is a very saturated market for online food delivery and has recently experienced increased competition,” company officials said on Monday.

“Unfortunately Foodora has not been able to achieve a solid leadership position and has not been able to achieve a level of profitability in Canada sustainable enough to continue operating. “

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The company is scheduled to close on May 11.

The announcement also comes two months after the Ontario Labor Relations Board ruled that the couriers were “dependent contractors” and therefore could unionize.

Foodora’s couriers held a vote in August on whether to join the Canadian Union of Postal Workers, but the results at the time were sealed pending challenges to the couriers’ employment status and their status. eligibility to join a union.

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The company said employees were informed of the announcement earlier today and will be paid according to contracts.

The news release says Foodora Canada is “preparing a proposal to provide additional recovery to employees and other creditors,” but details surrounding the proposal have not been released as they have yet to be determined.

Founded in 2015, the company said it works with 3,000 restaurants in 10 Canadian cities.

– With files from The Canadian Press

© 2020 Global News, a division of Corus Entertainment Inc.



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