Menulog is ending operations in Australia, becoming the latest casualty in the competitive service sector that will affect thousands of delivery riders, as well as around 120 direct employees.
The owner, Dutch multinational takeaway.com, announced on Wednesday that the Australian-based service will no longer take orders from 26 November.
“While Morulbog has a proud 20-year history, it has navigated difficult circumstances,” the company said.
The union’s National Secretary for Transport, Michael Kaine, said the closure would come as a “shock to the thousands of food delivery riders who rely on MENSULOT for income”.
“We will work to ensure that workers receive compensation for their work and fair severance pay in the coming weeks,” Kaine said.
“In the GG economy, workers are still reeling from low minimum wage rates, no sick leave or superannuation, and deadly pressure to hurry to get settled and avoid deactivation.”
While Menulog’s direct employees have the right to run the packages, the riders do not, highlighting the lack of protections offered to those working at GIG Ekonome.
Mertulog, which supports industry changes to improve work standards for riders, said it would make a four-week voluntary payment to qualified couriers.
Sign up: AU Breaking News Email
Australia Australia understands delivery riders who have worked for Marimpog for at least six months and have completed a delivery in the last eight weeks will be eligible for compensation.
Menulog’s website says the Australian operation supports thousands of on-demand delivery carriers “. Most of the riders work for multiple visualization apps, according to the union.
Managing Director of Mentulo, Morten Belling, said that the priority is to support customers, owners and partners.
“Today is a difficult day for the Menulog business and I want to assure everyone that this decision was not taken lightly,” Belling said.
After the newsletter promotion
After an initial boom early in the pandemic, the delivery service sector has proven to be a highly competitive industry with frequent closures.
Mentulo closed its New Zealand business last year, while rival Tribrante is set to collapse in Australia in 2022. Several smaller operations, including the Grocery Delivery Company, have also been closed.
Its impending closure will leave Uber food and Doordash as Australia’s most prominent dining apps, along with specialist services, including HungryPanda.
It only markets its international businesses, including Menulog, with the “made by a man” Slogan. The ads feature celebrities including Christina Aguilera, Snoop Dogg and Katy Perry.
Menulog customers can redeem unused vouchers and credits before the App Closes Time Week.