Menulog has been operating in Australia for 20 years but said it was navigating ‘challenging circumstances’. (Source: Menulog)
Food delivery platform Menulog has announced it will cease operations in Australia after 20 years in business. The change will impact about 120 employees, with the platform to go dark in just two weeks.
Menulog, which was founded in Sydney in 2006, confirmed it had been navigating “challenging circumstances”. It said the strategic decision reflected its focus on accelerating growth and investments in other markets.
“Today is a tough day for the Menulog business and I would like to reassure everyone this decision was not taken lightly,” Menulog managing director Morten Belling said in a statement released on Wednesday.
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“Our priority now is to support our customers, couriers and partners. This is why we are providing everyone a two-week transition period, in which customers can redeem unused vouchers and credits. Additionally, eligible couriers will be entitled to a 4-week voluntary payment.”
Menulog will no longer accept orders from midnight, Wednesday, November 26.
Impacted employees will be given redundancy packages, which the company said would be above legal requirements and placement support.
Transport Workers’ Union national secretary Michael Kaine said Menulog’s closure would be 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,” he said.
Menulog was founded in Sydney in 2006 and was well known for its ads featuring Katy Perry and Snoop Dogg. (Source: Menulog)
Menulog was founded in Australia in 2006 as a self-delivery marketplace for restaurants that handled their own deliveries before expanding to include its own delivery logistics.
Menulog was bought by UK-based online food delivery company Just Eat in 2015 for $855 million. It subsequently merged with Dutch company Takeaway.com to form Just Eat Takeaway.com in 2020.
The company was well-known for its iconic ads featuring Katy Perry and Snoop Dogg.
It follows Deliveroo’s exit from the Australian food delivery sector in November 2022, citing “challenging economic conditions”.
Fellow delivery company and Sydney-based start-up Milkrun collapsed in April 2023, with all staff made redundant. Woolworths later bought the company in May 2023 for a reported $10 million.
Uber Eats holds the biggest market share in Australia by far, with DoorDash the other major competitor in the space.
Australians have taken to social media to lament Menulog’s closure this morning, with many arguing the lack of competition would be a bad thing for consumers.
“If we thought food delivery apps were bad now, imagine how bad it’s gonna be with Uber Eats taking more of a market share…” one Aussie said.
“As much as they all suck, they do come in handy when drunk/injured … and less competition with Uber is going to make it even worse,” another agreed.
Others said they were glad they would no longer have to see Menulog’s ads which were frequently run on commercial TV and online platforms.
“No more annoying Snoop Dogg and Katy Perry ads,” one person quipped.
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