Deliveroo plans to exit the Dutch market by the end of November after 7 years
British meal and grocery delivery company Deliveroo will likely leave the Netherlands at the end of this year. The platform believes it is not large enough in the Netherlands to make sufficient profit and has therefore started the departure process. The departure will likely be complete by the end of November.
Deliveroo said it is active in 11 markets worldwide and achieves the most sales in places where it is number 1 or 2 in the market. The delivery company only gets 1 percent of its turnover in the Netherlands. “The company has determined that achieving and maintaining a top market position in the Netherlands requires a disproportionate investment with uncertain long-term returns,” Deliveroo said.
“This is not a decision we have taken lightly,” said Chief Operating Officer Eric French in a statement. “We have enjoyed working with thousands of restaurants in the Netherlands and would like to thank consumers who have ordered from us and enjoyed their meals. We will continue to operate normally during the consultation process.”
The company said the decision is part of “maximizing returns on its investments and meeting profit targets in a challenging macroeconomic environment.” But the decision is not “final” as long as the consultation process is ongoing, Deliveroo said in a message to customers.
The delivery company, mainly active in the United Kingdom and Ireland, announced in March that it would deliver groceries for supermarket chain SPAR. In the Netherlands, Deliveroo has long been involved in a legal battle over having to hire delivery drivers. The company wants them to be self-employed, but several courts have already labeled them employees. A Supreme Court ruling on this case was expected before December 23.
In announcing its half-year figures, Deliveroo said it was increasingly suffering from lower consumer spending, who are likely saving on food delivery due to high inflation. Other delivery companies, like Thuibezorgd parent Just Eat Takeaway, are also affected by this. Due to cutbacks in marketing, among other things, the company’s loss was not too bad at 80 million euros, also compared to what analysts expected. Turnover amounted to almost 1.2 billion euros.
Reporting by ANP