- Deliveroo is expanding into Hobart, Newcastle and Cairns for the first time, as well as increasing its footprint in other capitals.
- The meal delivery platform says it will give 1.5 million more people access to its service.
- Deliveroo currently has 8000 restaurants on its network, with plans to add another 1200.
Online restaurant meal delivery platform Deliveroo is expanding its footprint in three Australian capitals, as well as moving into Hobart, Newcastle and Cairns, saying it will give 1.5 million people access to the service.
In Melbourne, the suburbs of Box Hill, Doncaster, Ferntree Gully and Heidelberg have been added, while the Sydney network now includes Bankstown, Five Dock, Campsie, Hornsby and Narrabeen and surrounding areas. Perth has added Morley, Joondalup and Scarborough and other nearby suburbs.
Deliveroo has also expanded to Maroochydore on Queensland’s Sunshine Coast.
The company claims the move will add around 500 part-time riders over the next six months to service the new areas as it sets a target of 1,200 new restaurants in those regions. There are currently 8,000 Australian restaurants on the platform.
The expansion comes a month after the company launched a delivery-only super kitchen in Melbourne’s Collingwood last month, which can host up to 25 restaurants across nine kitchens.
Known as Editions, there’s a second in Melbourne in Windsor to Melbourne’s south, but it’s just one-fifth of the size of the Collingwood Editions.
Those signed up for the Collingwood Editions include Fishbowl, Royal Stacks, Sauced, Los Hermanos Mexican Taqueria, The Moor’s Head, Messina, and Pat n Stick’s, while the Windsor Editions includes Baby, Kong, 8Bit, Up in Smoke and Messina.
The latest expansion means Deliveroo now operates in 13 Australian cities: Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra, Geelong, Wollongong, Hobart, Newcastle, Cairns and Penrith.
The UK-based business, undoubtedly buoyed by seeing off German giant Foodora, which collapsed into administration in Australia in August, is nonetheless conscious of Foodora’s legacy of underpaying delivery riders.
Earlier this month, in a decision that will also have an impact on the likes of Deliveroo, Uber Eats and MenuLog, a former Foodora delivery rider, Josh Klooger, won his unfair dismissal claim in the Fair Work Commission, which found that his termination was “harsh, unjust and unreasonable” after he publicly raised concerns about pay and conditions.
After being hired in 2016 on $14 an hour, plus $5 per delivery, Klooger was receiving $7 per delivery with no other pay by 2018.
Foodora was ordered to pay $15,559 in compensation to Klooger, although he’s unlikely to see the cash with the failed business also owing other workers money – despite previously claiming otherwise – along with tax and a $28 million “loan” to the Germany parent company.
Deliveroo is keen to distance itself from the Foodora model, saying its existing Australian network of more than 6,500 riders earns an average of $22 per hour and works an average of 15 hours per week, and “an overwhelming majority say that flexibility is the number one reason they ride with Deliveroo”.
Australia Country Manager Levi Aron said the latest expansion was an important milestone for the business after a year of strong growth.
“Since entering the Australian market only three years ago, Deliveroo has received an overwhelmingly positive response from restaurants, riders and customers alike,” he said.
“We look forward to continuing to bring Deliveroo to an even greater number of customers throughout Australia, while providing flexible, well-paid work to even more riders, and generating new revenue streams for our restaurant partners.”