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During a time when we're relying more heavily on food delivery than ever before comes some disappointing news: Foodora is officially shutting down operations in the Canadian market on May 11, 2020.
The company, which originated in Berlin and now operates in six different countries, entered the Canadian market five years ago through the purchase of Hurrier, a food courier service. Since then, they have built up 3,000 restaurants on their platform and expanded to 10 major cities across Canada, developing significant growth and awareness through special offers, social media promotions and their signature, eye-catching, hot-pink branding. They've also garnered strong partnerships over the years with various influencers, brands and even the LCBO.
Yesterday, Foodora announced that they will be ceasing operations due to an inability to reach sustainable profitability levels. Because of the saturated and competitive market of delivery services here in Canada, the company stated that they are unable to continue without the need to cover a significant amount of losses. Considering that Toronto mayor John Tory recently proposed that food delivery services lower their cut of the profits to help out restaurants who are in a tough position right now, Foodora is no doubt unable to keep up with the current climate.
They are currently working on a plan to provide some assistance to their Canadian employees, who were informed yesterday of the news. We wish them well during this time, and Foodora will be missed here in Canada!