The company of delivery of meals at home Foodora announced its closure on Monday, failing to achieve a level of profitability sufficient” after five years of presence in Canada.
Foodora, which is present in 10 Canadian cities, including Montreal and Quebec city, offers its customers to order meals from restaurants through its platform. These meals are then delivered by bicycle courier.
However, several other companies, such as Uber Eats, DoorDash and Skip, are engaged in fierce competition in the field of food delivery.
“Canada is a highly saturated market for online services of food delivery to home and has recently experienced increased competition. Foodora has unfortunately not managed to reach a position of leader in the field,” explained the company via press release.
“We operate a business that requires a high volume of transactions to make a profit. We have not been able to achieve a position that would allow us to continue to operate without having to absorb continuous losses,” added the director-general of Foodora Canada, David Albert.
The company will continue to serve its customers until 11 may, inclusive. She also plans to make a proposal to its creditors, the terms of which remain to be determined.
Foodora worked with more than 700 restaurants in Montreal and more than a hundred of Québec.