In a surprise announcement, British food delivery company Deliveroo said on Monday that it will halt its operations in Germany at the end of this week.
Deliveroo said that it would be focusing on other markets in European countries and in the Asia-Pacific region.
The service is set to stop on August 16. The company said that its drivers as well as restaurants and employees would receive “appropriate” severance and compensation packages.
They added that customers will be paid back for outstanding credit on their accounts.
Like other delivery services, Deliveroo allows customers to order food from local restaurants online and to have a bicycle-riding delivery worker pick up the food from the kitchen and deliver it to the customer’s door.
Little competition left in German market
Deliveroo’s departure further strengthens the dominance of its main rival, Lieferando, on the German food delivery market.
Lieferando’s owner, Dutch firm Takeaway, recently finalized an acquisition deal that added Delivery Hero (Lieferheld) to its brand, as well as Pizza.de and Foodora.
Deliveroo was founded in London in 2013 and continues to operate in 13 countries worldwide. The service faced calls for a boycott in France last week after delivery riders there criticized the company’s new payment system that would lower their wages.
The company amassed 1,100 freelance delivery riders as well as around 100 employees since it launched operations in Germany in 2015.