Menulog off: food delivery service to cease operations
After 20 years of food and advertising campaigns with Snoop Dogg and Katy Perry, someone said Menulog would be shutting down its Australian operations.
The popular food delivery service will cease trading on November 26, which will cut 120 jobs and reduce competition in the market, the company announced on Wednesday.
The Transport Workers Union said the closure would come as a shock to delivery workers who are fighting for better employment conditions.
The announcement also follows the closure of Deliveroo in 2022 and Foodora in 2018, despite growth in the food delivery market.
Founded in Sydney in 2006, Menulog was one of Australia’s most popular food delivery apps after UberEats in 2022, according to Roy Morgan.
Menulog managing director Morten Belling said the decision to close the business was a compelling one and the two-week closure notice was designed to allow customers to use vouchers and credit.
“This is a difficult day for the Menulog business and I would like to reassure everyone that this decision was not taken lightly,” he said.
“Our priority now is to support our customers, couriers and partners.”
The company, which has been acquired by Dutch firm Just Eat Takeaway.com, will offer four weeks’ redundancy payments to some delivery couriers.
Transport Workers Union national secretary Michael Kaine said the news would come as a shock to thousands of couriers and highlighted the instability of employment in the sector.
“We will work over the coming weeks to ensure these workers are paid for their work and receive fair exit payments,” he said.
“In the gig economy, workers are still devastated by below-minimum wage rates, lack of sick leave or retirement, and deadly pressure to rush to make ends meet and avoid being disabled.”
The federal government introduced Closing loophole laws Bringing minimum standards in 2024 employee-like workersand allowed the Fair Work Commission to set minimum standards for gig economy workers.
Mr Kaine said remaining delivery services also needed to urgently support the changes to ensure couriers have confidence in their working conditions.
“DoorDash, Uber Eats, Hungry Panda and Easi need to come to the table now to ensure we implement standards as quickly as possible,” he said.
Menulog’s closure will also entail the end of the only food delivery service, which follows the withdrawal of Deliveroo in November 2022, which launched in Australia and also affected 120 jobs.
The closures occurred despite market growth; Statista reported that more than 8.3 million Australians will use food delivery services in 2024, with Mordor Intelligence predicting the foodservice market will grow at an annual rate of 11.45 per cent.
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