Foodora

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Foodora
Private
IndustryOnline food ordering
Founded2014; 6 years ago (2014)
Headquarters
Key people
Shilei Zhang
Hans Skruvfors
Joonas Kuronen
Elisabeth Myhre
OwnerDelivery Hero
Websitefoodora.com

Foodora is an online food delivery brand originally based in Berlin, Germany[1] which offers meals from over 9,000 selected restaurants in the Nordic region.[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 delivery operations of Delivery Hero, including Foodora Germany. On April 1, 2019, the transaction was completed, with Foodora GmbH officially belonging to Lieferando, a part Takeaway.[8]

Delivery Hero continues to operate under the Foodora brand in other markets. As of May 2020, Foodora remains available in Finland, Norway and Sweden.

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] In Sweden, foodora is growing rapidly and has employed hundreds of riders. The Swedes' increased need for fast deliveries has accelerated [11]

Geographical presence[edit]

Foodora operates in three Nordic countries: Finland, Norway and Sweden.[3]

Former operations[edit]

Previously the company also operated in Australia, Canada, France, Germany, Italy, and the Netherlands.

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.[12] On 1 August 2018, Foodora announced that it was closing operations in Australia on 20 August 2018.[13]

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. In the Summer of 2019, Foodora deliverers in Toronto and Mississauga campaigned to unionize with the support of the Canadian Union of Postal Workers. Foodora claimed that deliverers were independent contractors and therefore were not entitled to form a bargaining unit. The votes were sealed pending the resolution of legal disputes between the delivery workers and the corporation.[14] Foodora rolled out a partnership with the LCBO in September 2019 in Toronto. On 4 March 2020, the Ontario Labour Relations Board, in a landmark decision, ruled that Foodora deliverers were dependent, rather than independent, contractors, and therefore could unionize.[15] On 27 April 2020, Foodora announced that it was closing operations in Canada on 11 May 2020.[16]

Netherlands[edit]

Foodora ended its operations in the Netherlands on 15 October 2018.[17] It had been active in the country since May 2015.

Controversies[edit]

Foodora has been accused of "sham contracts" with its workers.[18] 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.[19] In 2017, Foodora workers protested working conditions in Berlin.[20]

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.[21] 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.[22] 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.[23]

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 (2015-05-27). "Today in Germany: Granify, Venture Stars, Volo, Campanda.de". theheureka.com. Vertical Media GmbH. Retrieved 16 February 2019.
  6. ^ Bien, Perez (2015-10-08). "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 (2015-10-08). "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. ^ "Kein Pink mehr auf den Straßen: Foodora ist jetzt Lieferando". 2019-04-18. Retrieved 27 May 2019.
  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. ^ https://digital.di.se/artikel/foodora-anstaller-over-300-personer-i-sverige-till-arbetsrattsliga-villkor
  12. ^ "Suppertime rebrands as Foodora, Launches in Australia – B&T". B&T. 2016-03-15. Retrieved 2017-07-07.
  13. ^ "Foodora to pull out of Australia later this month". 2 August 2018. Retrieved 16 February 2019.
  14. ^ "Foodora union voting ends but battle to unionize far from resolved". 13 August 2019. Retrieved 27 April 2020.
  15. ^ "Canadian Union of Postal Workers v Foodora Inc" (PDF). 22 February 2020. Retrieved 27 April 2020.
  16. ^ "Foodora Canada announces plan to close in Canada". 27 April 2020. Retrieved 27 April 2020.
  17. ^ "Licht uit bij Foodora in Nederland". emerce.nl. 2018-10-16. Retrieved 16 February 2019.
  18. ^ "Deliveroo and foodora accused of using sham contracts for bicycle delivery riders". Smh.com.au. 2016-03-30. Retrieved 2016-11-02.
  19. ^ Tassinari, Arianna; Maccarrone, Vincenzo (2017-01-23). "Striking the Startups". Jacobin. Retrieved 16 February 2019.
  20. ^ Julius Haswell (2017-05-18). "Foodora and Deliveroo couriers protest working conditions in Berlin". The Local. Retrieved 2018-03-01.
  21. ^ "Delivery riders protest against 'UberCheats, Fraudora' conditions and pay". ABC News. 2018-03-14. Retrieved 2018-04-17.
  22. ^ Patty, Anna (2018-03-13). "'Fired for taking a holiday': Bicycle couriers claim unfair dismissal". The Sydney Morning Herald. Retrieved 2018-04-17.
  23. ^ 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]