Two months after announcing a plan to pull out of the Netherlands, United Kingdom-based food delivery aggregator Deliveroo has made it official.
“Following consultation with employees and riders, Deliveroo has determined that achieving and sustaining a top-tier market position in the Netherlands would require a disproportionate level of investment with highly uncertain long-term potential returns,” the company said in a news release Wednesday (Oct. 19).
The Netherlands made up just 1% of Deliveroo’s gross transaction value in the first half of the year, according to the release. The company’s final day operating in the country will be Nov. 30.
Riders and employees will receive “appropriate compensation packages,” the release stated.
Deliveroo announced its plan to leave the Netherlands in August, with CEO Will Shu saying on an earnings call that it was “quite clear” that the company did not have a strong position on the ground in that country.
“We’ve also been there coming up on seven years, so I think we’ve had an ample amount of time to understand that market,” he added.
This year has seen many high-profile food delivery services give up on key markets. For example, German food delivery group Delivery Hero announced its Foodpanda brand was exiting Japan due to rising competition and a shortage of drivers.
Uber Eats, meanwhile, pulled out of Brazil, while German ultrafast startup Gorillas pulled out of Italy and Belgium. And Ultrafast grocer Jokr, exited the United States, where it had a presence in Boston and New York City, in favor of expanding its Latin American business.
Last week, Deliveroo announced it would begin offering buy now, pay later (BNPL) services via Klarna. The service gives diners the option to pay immediately, to pay the full amount within 30 days or, for orders of at 30 pounds ($34) or more, to pay in a trio of installments over 60 days.
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