• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Skip to navigation
Close Ad

The Spoon

Daily news and analysis about the food tech revolution

  • Home
  • Podcasts
  • Events
  • Newsletter
  • Connect
    • Custom Events
    • Slack
    • RSS
    • Send us a Tip
  • Advertise
  • Consulting
  • About
The Spoon
  • Home
  • Podcasts
  • Newsletter
  • Events
  • Advertise
  • About

Delivery Hero Subsidiary Foodora to Exit Canadian Food Delivery Market

by Jennifer Marston
April 28, 2020April 28, 2020Filed under:
  • Business of Food
  • Delivery & Commerce
  • Featured
  • Restaurant Tech
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to email this to a friend (Opens in new window)

Restaurant food delivery service Foodora is exiting the Canadian market after operating there for five years, according to a company press release. The Berlin, Germany-based company, a subsidiary of Delivery Hero SE, cited profitability as the reason for its departure.

“Canada is a highly saturated market for online food delivery and has lately seen intensified competition,” the release notes, adding that “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 also currently operates in a number of countries across Asia and Europe. The service’s Canada business, which operates across 10 cities, will continue until May 11. 

While the press release highlights tough competition and a saturated market as reasons for its departure, Eater Montreal was quick to point out another factor that may have contributed to Foodora’s decision: Foodora’s drivers being allowed to unionize. In February of this year, the Ontario Labour Relations Board ruled that couriers working for the service should be classified as “dependent contractors.” Like California’s Assembly Bill 5, which was signed into law last year, this means Foodora would have to treat workers as employees, offering things like paid sick leave. 

The press release mentions nothing about the Ontario Labour Relations Board decision. However, it costs delivery companies more money when workers are classified as employees, which could further erode their (still nonexistent) profitability.

Nor would this be the first time worker classification and profitability are linked when it comes to food delivery. As we wrote earlier this year, “Companies like Uber, Postmates and DoorDash are all under increased pressure from investors to become profitable. Laws like California’s AB 5 certainly complicate that path to profitability.”

And while Foodora’s decision to exit Canada doesn’t appear to be directly related to the COVID-19 pandemic, the restaurant industry upheaval the virus is causing has intensified the discussion around the third-party delivery model itself: it’s relationships to restaurants, control over customer data, and the way it treats the workers it needs to survive and maybe one day reach profitability.


Related

Uber Eats Is Exiting Eight Markets

Uber Eats Is exiting the Czech Republic, Egypt, Honduras, Romania, Saudi Arabia, Uruguay, and Ukraine, according to a regulatory filing from today flagged by TechCrunch. The company's ride-hailing business will not be affected. The filing notes that, “These decisions were made as part of Uber’s ongoing strategy to be in first…

Sidewalk Robot Specialist Serve Raises $13 Million From Uber, 7-Eleven & Wavemaker Labs

Serve Robotics, the autonomous sidewalk delivery robot spinout of Postmates (which itself was acquired by Uber), has announced a $13 million expanded seed round of funding. The new funding round includes several strategic investors, including former parent Uber Technologies, Delivery Hero backed DX Ventures,7-Eleven Inc.'s corporate venture arm, 7-Ventures, and…

7-Eleven in Canada Now Sells Beyond Meat Pizza for Grab & Go

Yesterday 7-Eleven Canada announced the launch of Beyond Meat Pizza on its Hot to Go menu. The 'za is topped with Beyond Italian Sausage Crumbles and roasted vegetables, and is now available in select Toronto 7-Eleven locations. According to a press release from 7-Eleven, customers can grab a piping hot…

Get the Spoon in your inbox

Just enter your email and we’ll take care of the rest:

Find us on some of these other platforms:

  • Apple Podcasts
  • Spotify
Tagged:
  • delivery
  • Delivery Here
  • Foodora
  • third-party delivery

Post navigation

Previous Post Toast’s New Delivery System Is (Potentially) Cheaper for Restaurants Than Third-Party Services
Next Post Cheetah Raises $36M for its Wholesaler-to-Consumer Grocery Delivery and Pickup

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Get The Spoon in Your Inbox

The Spoon Podcast Network!

Feed your mind! Subscribe to one of our podcasts!

Nearly Seven Years After Launching Kickstarter, Silo Finally Delivers Next-Gen Home Food Storage System
What Flavor Unlocks
Starbucks Unveils Green Dot Assist, a Generative AI Virtual Assistant for Coffee Shop Employees
Impulse Announces Its Battery-Integrated Cooktop Becomes First Certified to Applicable UL Safety Standards
Tasting Cultivated Seafood in London’s East-end

Footer

  • About
  • Sponsor the Spoon
  • The Spoon Events
  • Spoon Plus

© 2016–2025 The Spoon. All rights reserved.

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.