The app-based food-delivery company, which operates in 10 cities across Canada, cited tough competition in a saturated market as a reason for leaving the country. “[Foodora] has unfortunately not been able to reach a strong leadership position, and has been unable to reach a level of profitability in Canada that’s sustainable enough to continue operations,” the firm said in a statement. (The Logic)
Talking point: While some meal-delivery firms have seen a drop in business during the pandemic as more people stay home and cook for themselves, the announcement comes two months after Foodora couriers in Toronto won an historic court case granting them the right to unionize. In the days before Foodora announced its Canadian retreat, lawyers for both parties were negotiating terms for tallying the union vote, cast in August 2019, but put on hold pending the ruling from the Ontario Labour Relations Board, according to a source close to the negotiations. The Logic reported in February of other efforts to unionize the firm’s couriers in Montreal. Foodora did not respond to The Logic’s request for comment as of publication time.