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Deliveroo app: Deliveroo competitor UberEats collapses, 200 jobs lost as start-up Ballarat goes bankrupt

UberEats and rival Deliveroo suddenly collapse: Australia’s ‘only’ locally owned food delivery app goes into liquidation and 200 workers lose their jobs

  • Australian food delivery service Delivr collapsed with 200 out of work
  • Founder Alex Power said driver shortages and rising cost of living contributed to this
  • Australia’s ASIC business regulator has been notified of the appointment of liquidators

Australian rival to international food delivery giants UberEats and Deliveroo has collapsed, leaving up to 200 workers out of work.

Delivr – founded in 2017 in Ballarat, Victoria – notified ASIC, Australia’s business regulator, that it had appointed liquidators on July 20.

At its peak, the business hired 200 employees, including delivery drivers, and had 18,000 customers, but despite the boom in food delivery during lockdowns, it was unable to generate enough revenue to stay afloat.

The start-up was founded by university student Alex Power, who arrived from South Africa to study mining engineering and noticed that Australian regions were underserved by big food delivery players.

Delivr grew rapidly during the shutdowns by developing partnerships with restaurant chains Grill’d and Schnitz, but the ‘last 10 months have been difficult’

The company, Australia's only locally owned food delivery service, told ASIC it had appointed liquidators on July 20.

The company, Australia’s only locally owned food delivery service, told ASIC it had appointed liquidators on July 20.

Starting in his Ballarat area, Mr. Power formed partnerships with chains such as Grill’d, La Porchetta and Schnitz and expanded the start-up.

Since 2017, the company has achieved a turnover of approximately 6 million dollars.

Mr Power attributed the company’s collapse to the shortage of drivers which ‘pushed our cost per delivery through the roof as we competed with the giants for driver audiences’.

As a result, the company offered $100 signing bonuses to drivers in June of this year.

In a statement to Smart Company, Mr Power said rising interest rates pushing up mortgages had also put pressure on households and as a result ‘sales faltered’, leaving Delivr ‘unsustainable’. to continue as a business.

Fabian Kane Micheletto and Michael Carrafa of SV Partners have been appointed liquidators.

Mr Power also confirmed that he was the only person directly employed by Delivr, with customer support staff and drivers working on a contract basis.

He said major international food delivery companies had enough capital to be able to continue operating despite the “incredibly” difficult market conditions.

In 2022, grocery delivery start-ups Quicko and SEND both closed, while competitor Milkrun dropped its 10-minute delivery guarantee due to driver shortages and rising costs.

Founder Alex Power (pictured) said he was the only person

Founder Alex Power (pictured) said he was the only person ‘directly’ employed by Delivr