Deliveroo plc Announces Proposal to End Operations in Spain
July 30, 2021 at 01:39 pm IST
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Deliveroo plc announced that it proposes to consult on ending its operations in Spain. Deliveroo currently operates across 12 markets worldwide, with the vast majority of the Company's gross transaction value (GTV) coming from markets where Deliveroo holds a #1 or #2 market position. Spain represents less than 2% of Deliveroo's GTV in H1 2021. The Company has determined that achieving and sustaining a top-tier market position in Spain would require a disproportionate level of investment with highly uncertain long-term potential returns that could impact the economic viability of the market for the Company. The proposal to end operations in Spain reflects the Company's intention to focus investment and resources on the Company's other markets, continuing to grow its network of consumers, restaurant and grocery partners, and riders, and expanding market share in both new and existing towns and cities. Deliveroo's proposal to consult on the ending of its operations in Spain remains subject to full consultation with impacted employees and riders. Deliveroo anticipates that the collective consultation process will commence in early-September and the Company will work with all relevant stakeholders and prepare all required documentation accordingly. Should the Company decide to end operations after the conclusion of the consultation process, which will take around a month, the Company will make sure that appropriate compensation and goodwill packages, compliant with all local regulations and laws, will be available for riders and employees.
Deliveroo plc is a United Kingdom-based company which provides delivery service through its online platform. The Company is involved in offering an on-demand delivery service via a hyper-local three-sided online marketplace. It connects consumers, riders and restaurant, grocery and retail partners across local markets to bring people the products. The Company works with approximately 182,000 restaurants and grocery partners, as well as around 135,000 riders to provide the food delivery services. It covers a range of cuisines and price options, with access to approximately 158,000 restaurant partner sites globally and approximately 18,000 grocery partner sites. Its Plus subscription program provides benefits to the consumers with free delivery and additional rewards. It has built a diverse base of approximately 176,000 merchants. It operates across 10 markets, including Belgium, France, Hong Kong, Italy, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates and the United Kingdom.