foodora Canada has filed a notice of intention to make a proposal and plans to cease operations effective the end of day on May 11th

foodora has not been able to reach a level of profitability in Canada that’s sustainable enough to continue operations, competing against strong local players and a highly saturated market for online food delivery

foodora is also working on putting together a proposal to provide additional recovery to employees and other creditors

BERLIN, April 27, 2020 (GLOBE NEWSWIRE) -- Today, foodora Inc. in Canada (subsidiary of Delivery Hero SE) announced a plan to close its business after five years of operation. Canada is a highly saturated market for online food delivery and has lately seen intensified competition. 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.

“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,” said David Albert, Managing Director of foodora Canada.

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.

foodora

foodora is dedicated to bringing Canadian food lovers their favourite meals from a curated list of local restaurants. Since 2015, the on-demand food delivery service has grown to more than 3,000 partner restaurants in 10 cities across Canada. Belonging to Delivery Hero, a worldwide leader of the food delivery industry, foodora is a sustainably focused company that strives to reduce its carbon footprint through its use of bikes and its commitment to reducing single-use plastic. For more information, visit http://www.foodora.ca .

Delivery Hero

Delivery Hero is the world's leading local delivery platform. The company maintains number one competitive market positions in 36 out of 44 countries across Europe, Latin America, Asia-Pacific, the Middle East and North Africa in terms of restaurants, active users, orders, online and mobile platforms. Delivery Hero also operates its own delivery service primarily in over 530 cities around the globe. Headquartered in Berlin, Germany, Delivery Hero has over 22,000 employees across its markets.