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Market just too small: Menulog quits New Zealand

Author
Cameron Smith,
Publish Date
Tue, 16 Apr 2024, 3:23PM
Online food delivery platform Menulog is quitting New Zealand, where it has operated since 2012.
Online food delivery platform Menulog is quitting New Zealand, where it has operated since 2012.

Market just too small: Menulog quits New Zealand

Author
Cameron Smith,
Publish Date
Tue, 16 Apr 2024, 3:23PM

Online food delivery platform Menulog will discontinue its New Zealand operations in May.

Parent company Just Eat Takeaway confirmed the decision today, saying: “New Zealand represents a small part of the Just Eat Takeaway.com business and its size is insufficient to maintain a healthy business in this market.”

Its website and app will no longer work from May 16.

“This reflects the business’ commitment to drive efficiencies and focus on building strong and sustainably profitable positions,” a company statement said.

“We will provide full support to the very limited number of employees directly impacted by this decision.”

After questions from the Herald, a Menulog spokesperson said couriers – who are self-employed independent contractors in New Zealand – who had completed a delivery in the past three months would be eligible for a four-week payment.

Customers with unused vouchers would be able to use them or have them reimbursed during the transition period.

Menulog has been in New Zealand since 2012, having first launched in Australia in 2006.

The food delivery market has become increasingly crowded with companies such as Uber Eats, DoorDash and Delivereasy all competing.

The Amsterdam-headquartered Just Eat Takeaway is one of the world’s leading online food delivery companies, operating in 20 countries – mostly European – and in the United States.

In its 2023 full-year results, revenue came to €5.17 billion (NZ$9b), down 7.1 per cent from FY 2022. The company made a net loss of €1.85b, which narrowed 67 per cent from €1.99b in FY 2022.

Last week the Herald reported that rideshare company Ola was leaving New Zealand, as well as Australia and the United Kingdom.

Ola ceased operations last Friday after 5½ years here.

People could still access account information and raise any queries with the Ola customer care team until May 11.

Ola said it saw “immense” opportunity to expand in India, where it is headquartered.

Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports.

This article was originally posted on the NZ Herald here.

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