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Deliveroo To Quit Dutch Market On 30 November

By Dayeeta Das
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Deliveroo To Quit Dutch Market On 30 November

Deliveroo, the meals ordering and delivery company, said it would halt operations in the Netherlands as of 30 November with its riders in the country receiving a compensation package.

'After consulting with employees and riders, Deliveroo has established that reaching and keeping a top market position in the Netherlands would require unreasonable investment with an uncertain long term return,' the company said in a statement.

Compensation Package

It added that it had come to an agreement with Dutch labour union FNV on a compensation package for its more than 9,000 riders in the Netherlands.

The package consists of two parts – an amount equal to 38% of a rider's income in the past year and an amount based on their income and employment history, FNV said in a statement.

"It is unique that we have been able to make agreements for the riders now that the platform is leaving the Netherlands," said Anja Dijkman of FNV, which has previously clashed with Deliveroo over workers' rights.

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Deliveroo said in August it was considering the move, given the Dutch market only accounted for a small amount of its operations and it had failed to gain sufficient local market share.

The company slashed its full-year revenue outlook in July after a sharp slowdown in its second quarter performance. It reported a pretax loss of £147 million ($177 million) in the first half compared to a £95 million loss a year ago.

News by Reuters, edited by ESM – your source for the latest technology news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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