General

Menulog closing in Australia, affecting thousands of delivery drivers and 120 employees

In a significant development within the competitive landscape of food delivery services, Menulog has announced the closure of its Australian operations, set to take effect on November 26. This decision, made by its parent company Just Eat Takeaway.com, marks a major shift for the Australian-founded service, which has been a staple in the food delivery sector. The closure is expected to impact thousands of delivery riders across the country, alongside approximately 120 direct employees who will face job uncertainty as the company winds down its operations.

The Transport Workers’ Union (TWU) has stepped in, emphasizing the need for fair exit payments for affected workers. As the gig economy continues to evolve, the TWU is advocating for protections and support for those who will lose their livelihoods due to this closure. The union’s involvement highlights broader concerns about the treatment of gig workers within the delivery sector, particularly as companies like Menulog struggle to maintain profitability in a highly competitive market. The TWU’s commitment to ensuring fair compensation for workers underscores the growing awareness and activism surrounding workers’ rights in the gig economy.

Menulog’s exit from the Australian market comes as a stark reminder of the challenges faced by delivery services, which have been grappling with increasing operational costs and fierce competition from rivals like Uber Eats and DoorDash. The decision reflects a broader trend in the industry, where companies are reevaluating their positions and strategies in response to changing market dynamics. As the November closure date approaches, the focus will not only be on the operational implications for Menulog but also on the human impact on its workforce, raising critical questions about the future of gig work in Australia and the protections afforded to those who rely on it for their livelihoods.