On-demand food delivery company Deliveroo exits Dutch market amidst growth in the UK
Deliveroo, a London-based food delivery appointment that operates worldwide, has announced its plans to exit the Netherlands market. The exit was due to the surge in losses as investment costs ate into rising revenues.
Deliveroo has witnessed a loss after tax jumped 41% to £153.8 million compared with the first six months of last year. The revenue of the British group grew 12% to £1 billion despite easing Covid curbs and controversy over the treatment of its riders.
However, Deliveroo founder and CEO Will Shu expressed the company’s ability to adapt financially to any further changes in the macroeconomic environment.
Deliveroo has planned to end its operations in the Netherlands as it does not hold a solid local position. The food delivery app added that it would require a disproportionate investment level with uncertain returns to reach and sustain a top-tier market position. Notably, the exit from the Netherlands by the end of November follows Deliveroo’s departure from Spain in 2021.
Post this exit; the platform will have its service footprint in 10 markets, including Australia, Belgium, France, Hong Kong, Italy, Ireland, Singapore, United Arab Emirates, Kuwait, and the UK.
“The Company has determined that it would require a disproportionate level of investment, with uncertain returns, to reach and sustain a top tier market position, and therefore has decided to consult on ending its operations in the Netherlands,” the company stated. “Deliveroo anticipates that the consultation process with relevant stakeholders will commence in August and is working towards a potential date for the final day of operations in the Netherlands towards the end of November.”
The original article is “On-demand food delivery company Deliveroo exits Dutch market amidst growth in the UK.”