Foodora, the app based delivery company, has announced that it will permanently close in Canada. Foodora will cease operations at midnight on May 11.
Foodora Inc. is a subsidiary of Delivery Hero SE which is based out of Berlin. An e-mail was sent to delivery drivers on April 27 informing them of their departure from the food delivery market in Canada.
Shortly after, Foodora issued a press release on their website stating that they are closing due to increased competition in the market and an inability to turn a sustainable level of profit.
Foodora has filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act, which effectively allows them to restructure their affairs to avoid going bankrupt.
Foodora currently operates in the following Canadian cities:
- Quebec City
The company was competing for business with other food delivery apps like Uber Eats, Skip the Dishes and Door Dash.