Foodora

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Foodora GmbH
Private
IndustryOnline food ordering
Founded2014; 5 years ago (2014)
Headquarters
Berlin, Germany
Areas served
Europe, Canada
Key people
Rodrigo Sampaio
Eduardo Goes
Julian Dames
Emanuel Pallua
OwnerTakeaway.com
Websitefoodora.com

Foodora GmbH is a German online food delivery company based in Berlin,[1] which offers meals from over 9,000 selected restaurants in six countries worldwide.[2][3][4] Using the Foodora app, website or the corporate platform, customers can browse local restaurants, place an order, and track it as it’s prepared and delivered by a bike courier or delivery driver.

History[edit]

Foodora rider in Finland

Foodora was founded under the name Volo GmbH in Munich in February 2014. It relocated to Berlin when Rocket Internet acquired 100% of the company in April 2015.[5] In June 2015, Foodora also acquired food delivery services Hurrier (in Canada), Suppertime (in Australia), and Heimschmecker (in Austria), which now all operate under the Foodora brand. In September 2015, Delivery Hero acquired Foodora from Rocket Internet.[6] Foodora was then merged with Delivery Hero’s upscale food delivery brand, Urban Taste, under the name Foodora.[7]. In December 2018, the Dutch group Takeaway purchased the German brand Foodora. On April 1 2019, the transaction was completed, with Foodora GmbH officially belonging to Lieferando, a part of the Dutch group Takeaway.[8].

Operations[edit]

Using Foodora's website or mobile app, customers can browse restaurants near them, place their order, and pay. The order is then prepared by the restaurant, picked up by one of Foodora's couriers (foodsters), and delivered to the customer “in about 30 minutes".[9] Foodora provides both B2C and B2B food delivery services. In Germany, Foodora suffers from high costs of about €12–14 per driver hour. In January 2017, it was reported that Foodora made a loss of approximately €5–6 million per month globally, though the company is trying to reduce costs and improve efficiency.[10]

Geographical presence[edit]

Foodora operates in six countries worldwide: Austria, Canada, Finland, Germany, Norway, and Sweden.[3]

Australia[edit]

Foodora had expanded over the Australian market in Sydney, Melbourne and Brisbane. In September 2015, Foodora acquired a local delivery company Suppertime, later re-branding it to Foodora in May.[11] On 1 August 2018, Foodora announced that it was closing operations in Australia on 20 August 2018.[12]

Canada[edit]

Foodora delivery man outside of a commercial office

In July 2015, Foodora entered the Canadian market by acquiring Toronto-based delivery company Hurrier. They expanded to Montreal in October 2015 and later re-branded both cities to Foodora in January 2016. An expansion to Vancouver occurred in 2016. They expanded to Ottawa in early 2019

Netherlands[edit]

Foodora ended its operations in the Netherlands on 15 October 2018.[13] It had been active in the country since May 2015.

Controversies[edit]

Foodora has been accused of "sham contracts" with its workers.[14] In October 2016, Foodora workers in Turin responded to the proposed change from hourly work to piece work with an organised protest against the general reduction in quality of work.[15] In 2017, Foodora workers protested working conditions in Berlin.[16]

Foodora workers in Australia have spoken out about the company. Workers have protested against the continuously falling rate of pay and policies that encourage dangerous behavior on the road.[17] Also of concern is workers' status as independent contractors despite their working conditions resembling that of employees. Foodora has responded punitively against workers who have spoken out, leading at least two workers to pursue legal action against the company.[18] On 16 November 2018, Foodora lost its unfair dismissal case, as the court ruled that its drivers were classed as employees rather than contractors, and was ordered to pay a former delivery driver almost $16,000 in compensation.[19]

References[edit]

  1. ^ Azaa, Wee Sile. "Upmarket restaurants embrace a tech delivery service". cnbc.com. Thomson Reuters. Retrieved 22 October 2015.
  2. ^ Stefan, Nicola. "Delivery Hero's Foodora Expands as Rivalry Intensifies". bloomberg.com. Bloomberg. Retrieved 19 February 2016.
  3. ^ a b "On-demand food delivery service foodora merges with Delivery Hero's Urban Taste and breaks into the global market". Dgap.de (in German). 2015-09-17. Retrieved 2016-11-02.
  4. ^ Chapman, Sophie (2 August 2018). "Foodora to end operations in Australia by 20 August". Business Chief. Australia and New Zealand Banking Group. Retrieved 16 February 2019.
  5. ^ The Eureka. "Today in Germany: Granify, Venture Stars, Volo, Campanda.de". theheureka.com. Vertical Media GmbH. Retrieved 16 February 2019.
  6. ^ Bien, Perez. "German start-up foodora plans to take Hong Kong's online food-courier services upmarket". SCMP. South China Morning Post. Retrieved 8 October 2015.
  7. ^ Bien, Perez. "German start-up foodora plans to take Hong Kong's online food-courier services upmarket". scmp.con. South China Morning Post. Retrieved 8 October 2015.
  8. ^ https://www.gruenderszene.de/food/foodora-lieferando-integration. Retrieved 27 May 2019. Missing or empty |title= (help)
  9. ^ Bodo, v. Braunmühl. "On-demand food delivery service foodora merges with Delivery Hero's Urban Taste and breaks into the global market". dgap.de. DGAP-Media. Retrieved 17 September 2015.
  10. ^ Alvares de Souza Soares, Philipp; Rest, Jonas (20 January 2017). "Hungry Eyes". manager magazin. 2.
  11. ^ "Suppertime rebrands as Foodora, Launches in Australia – B&T". B&T. 2016-03-15. Retrieved 2017-07-07.
  12. ^ "Foodora to pull out of Australia later this month". 2 August 2018. Retrieved 16 February 2019.
  13. ^ "Licht uit bij Foodora in Nederland". emerce.nl. 2018-10-16. Retrieved 16 February 2019.
  14. ^ "Deliveroo and foodora accused of using sham contracts for bicycle delivery riders". Smh.com.au. 2016-03-30. Retrieved 2016-11-02.
  15. ^ Tassinari, Arianna; Maccarrone, Vincenzo (2017-01-23). "Striking the Startups". Jacobin. Retrieved 16 February 2019.
  16. ^ Julius Haswell (2017-05-18). "Foodora and Deliveroo couriers protest working conditions in Berlin". The Local. Retrieved 2018-03-01.
  17. ^ "Delivery riders protest against 'UberCheats, Fraudora' conditions and pay". ABC News. 2018-03-14. Retrieved 2018-04-17.
  18. ^ Patty, Anna (2018-03-13). "'Fired for taking a holiday': Bicycle couriers claim unfair dismissal". The Sydney Morning Herald. Retrieved 2018-04-17.
  19. ^ Chau, David; Kontominas, Bellinda (16 November 2018). "Foodora loses unfair dismissal case and is ordered to pay former delivery rider $16,000". Australian Broadcasting Corporation. Retrieved 16 February 2019.

External links[edit]