Foodora Canada to cease operations after five years

foodora Inc. in Canada (a subsidiary of Delivery Hero SE) has announced it has been unable to reach a level of profitability in Canada to sustain operations and it will cease operations on 11 May.

David Albert, Managing Director of foodora Canada said: “I’m very proud of what foodora has accomplished over the last few years. I’ve been able to witness food delivery grow from its infancy into what it is today, and helping to build a brand I’m proud of. However, there’s been some challenges along the way. 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. We’ve been unable to get to a position which would allow us to continue to operate without having to continually absorb losses.

“Our service has grown to ten cities across the country, and none of this would have been possible without the dedication of our employees, riders and restaurants. I thank them for the continued support over the last five years. Supporting them during this transition phase is our main priority,” he added.

foodora Canada has filed a notice of intention to make a proposal; the details of the proposal have yet to be determined. The business will continue to run until the end of the day on May 11, 2020. foodora Canada’s employees have received their notice today and will continue to be paid as stipulated in their contractual agreements. The rider community has also been given notice period of termination.