Citing a crowded market and intensified competition in recent months, the delivery app Foodora has decided to cease operations in Canada as of next month. The company has just filed a notice of intention and appears as though its headed toward bankruptcy. Its final day of service will be Monday, May 11.
“I've been able to witness food delivery grow from its infancy into what it is today, and helping to build a brand I'm proud of. However, there's been some challenges along the way. We're faced with strong competition in the Canadian market, and operate a business that requires a high volume of transactions to turn a profit. We've been unable to get to a position which would allow us to continue to operate without having to continually absorb losses," said David Albert, managing director of Foodora Canada, in today's announcement.
The delivery app launched in 2015 and currently has a presence in ten major Canadian cities with more than 3,000 restaurant partners.
However, its parent company, Delivery Hero, still appears to be thriving internationally. The Berlin-based food delivery company operates in 530 cities across the globe with half a million restaurant partners.