Deliveroo to wind down operations in Singapore; final day of service on March 4

SINGAPORE – Delivery platform Deliveroo will exit the Singapore market on March 4, it said in a statement on its website on Feb 25.

All employees at its Singapore office will be affected by the move, Deliveroo said in a media reply, though it did not say how many would be impacted.

A Business Times report in end-2022 stated that the company has about 80 staff here, with a pool of about 10,000 delivery riders who were active at least once in the past month.

US firm DoorDash, which owns Deliveroo and another delivery platform, Wolt, said on Feb 25 that it will be exiting Qatar, Japan and Uzbekistan as well.

Calling it a “difficult decision” that followed a review of “country-specific conditions”, a company spokesperson said of the situation in Singapore: “We have concluded that the level of investment required is not aligned with our long-term strategy. We regularly review operational performance to ensure we are investing where we see the clearest path to sustainable scale and long-term leadership.”

Deliveroo said it will be “engaging individuals directly on the support available to them and will ensure all processes are handled in line with local regulations and company policies”.

The platform will remain active until March 4. Customers can use outstanding gift cards or unused credits before 3pm on that date. For a refund on subscriptions, customers should contact Deliveroo’s care team.

The company said Deliveroo riders can continue to deliver orders until 3pm on March 4.

Fees will be processed as normal on March 4, and any outstanding fees or incentives will be paid on March 10.

Deliveroo chief executive Miki Kuusi, who is also head of DoorDash International, said in a separate statement: “Over the last 11 years, we have been proud to help shape food delivery in Singapore, giving consumers access to a wide variety of restaurant and grocery partners.

“To all the employees, customers, partners and riders who have been on this journey with us and supported us along this journey – thank you.”

In a joint statement, the Singapore Manual and Mercantile Workers’ Union (SMMWU) and National Delivery Champions Association (NDCA) said they are ready to support affected employees and platform workers who are their respective members, even though Deliveroo is a non-unionised company in Singapore.

Deliveroo platform workers who are NDCA members are encouraged to contact the association, which can “assist them with payment-related issues, transitioning to other delivery platforms, or exploring permanent employment opportunities”.

The statement said: “While Deliveroo has not formally recognised NDCA, we understand this is a period of uncertainty for affected platform workers.

“NDCA is in contact with Deliveroo’s management to ensure that platform workers continue to receive their earnings in accordance with the regular payment cycle.”

Deliveroo employees who are transitioning to new employment opportunities are encouraged to contact SMMWU via phone or e-mail.

Affected workers who are Singaporeans or permanent residents can also use NTUC’s Employment and Employability Institute for job matching, career coaching and skills upgrading.

Eligible members of SMMWU and NDCA can also tap the Union Training Assistance Programme to offset training costs for skills upgrading.

The statement added: “This situation demonstrates the importance of platform operators formally recognising platform work associations such as NDCA and unions like SMMWU. The formal recognition and membership would allow SMMWU and NDCA to step in earlier to protect the interests and welfare of both employees and platform workers, and provide transition support.”

Some people expressed concern over whether Deliveroo’s exit would drive up prices on other delivery platforms in Singapore.

Marketing manager Dave Teo, 29, said he was sad to hear the news as Deliveroo is his favourite food delivery platform.

“It has a wide selection of restaurants and its delivery fees are generally lower compared with those of other platforms,” said Mr Teo, who had a six-month work stint at Deliveroo a few years ago.

“With Deliveroo gone, I am not sure if I will switch to the other platforms as their platform and delivery charges are already quite high, and they might increase further with less competition in the space.”

Other customers praised Deliveroo for its reliability and customer service standards over the years.

A social media user on online platform Reddit said: “I (have) only (relied) on Deliveroo for many years. Sad to see they are gone. Their customer service is the best among all the food delivery platforms.”

Another user said: “Deliveroo was the best delivery company; better support and much better food options than the others.”

Deliveroo has appointed Kroll as liquidator to manage the closure of its business in Singapore.