Menulog closing in Australia, affecting thousands of delivery drivers and 120 employees

Menulog is closing its Australian operations, becoming the latest casualty in the competitive delivery service app sector that will affect thousands of delivery riders, as well as about 120 direct employees. The owner, Dutch multinational Just Eat Takeaway.com, announced on Wednesday that the Australian-founded service will no longer take orders from 26 November. “While Menulog has a proud 20 year history, it has been navigating challenging circumstances,” the company said. The Transport Workers’ Union national secretary, Michael Kaine, said the closure would come as a “shock to the thousands of food delivery riders who rely on Menulog for income”. “We will be working to ensure those workers receive pay for their work and fair exit payments over the coming weeks,” Kaine said. “In the gig economy, workers are still languishing with below-minimum wage rates, no sick leave or superannuation, and deadly pressure to rush to make a living and avoid being deactivated.” While Menulog’s direct employees are entitled to redundancy packages, the riders are not, highlighting the lack of protections offered to those working in the gig economy. Menulog, which had supported industry changes to improve work standards for riders, said it would make a four-week voluntary payment to eligible couriers. Sign up: AU Breaking News email Guardian Australia understands delivery riders who have worked for Menulog for at least six months and have completed a delivery in the past eight weeks will qualify for the payment, which will be based on their average earnings. Menulog’s website says the Australian operation supports “tens of thousands of on demand delivery couriers”. Most riders work for multiple delivery apps, according to the union. The managing director of Menulog, Morten Belling, said the priority was to support customers, couriers and partners. “Today is a tough day for the Menulog business and I would like to reassure everyone this decision was not taken lightly,” Belling said. Related: Gig economy workers could win minimum employment standards under new laws After an initial boom early in the pandemic, the delivery service sector has proven to be a highly competitive industry with frequent closures. Menulog closed its New Zealand business last year, while its rival Deliveroo collapsed in Australia in 2022. Many smaller operations, including the grocery delivery company Voly, have also shut. Its imminent closure will leave Uber Eats and DoorDash as the most prominent delivery apps in Australia, along with specialised services, including HungryPanda. Just Eat had marketed its international businesses, including Menulog, with the “Did Somebody Say” slogan. The ads featured celebrities including Christina Aguilera, Snoop Dogg and Katy Perry. Menulog customers can redeem unused vouchers and credits before the app is shut in two weeks’ time. Do you know more? Email jonathan.barrett@theguardian.com