Deliveroo AU Has Been Placed into Voluntary Administration, Is Exiting Australian Market and Not Refunding Credits/Gift Cards

Just got this email from Deliveroo:


We have today made the sad announcement that we are leaving Australia. This has been a difficult decision to make. We have enjoyed serving you the amazing food that Australia is known for, working with thousands of brilliant restaurants and riders.

Deliveroo, like all other companies, is now doing business in challenging economic conditions, which requires us to take difficult decisions. We always aim to deliver the best possible service for our consumers wherever we operate, and if we cannot do that we will be prepared to review our position.

In Australia, we have concluded that achieving a sustainable position of leadership in the market is not possible without a disproportionate level of investment which would have highly uncertain returns.

On the basis of this decision, Deliveroo Australia has been placed into administration. The director of Deliveroo Australia has appointed Michael Korda, Andrew Knight and Craig Shepard of KordaMentha as voluntary administrators. To find out more, including information for creditors, please visit click here. You will receive further communications from the Administrators shortly.

What this means for you

Deliveroo Australia has ceased operations, meaning you can no longer place orders on Deliveroo in Australia.

You will still be able to access your customer account for up to 6 months from this date onwards. After this period your customer account will be closed. Within this period while your account is open, you can download your customer information.

Thank you for ordering with Deliveroo.

For any further information, please visit the administrators’ website at: https://kordamentha.com/creditors


Notably, Deliveroo is not refunding anyone with account credits or gift cards, and if you have these you are now an unsecured creditor:

https://kordamentha.com/getmedia/282f335e-a43a-4c7c-8162-c8a…

19. I have a credit on my customer account. Will it be refunded?
Customers with credits on their accounts will not be refunded for this amount. Such customers are deemed to be unsecured creditors in the Administration and should submit a Proof of Debt form. Further information on how to lodge a Proof of Debt form will be provided in due course.

26. Will gift cards be honoured?
As the Company ceased trading immediately, gift cards cannot be honoured or refunded. Customers with unexpired/unused gift cards are deemed to be unsecured creditors in the Administration and should submit a Proof of Debt form. Further information on how to lodge a Proof of Debt form will be provided in due course.


I note that Deliveroo plc (the UK-based parent company of Deliveroo Australia Pty Ltd) gave customers from The Netherlands 42 days notice before ending their operations: https://corporate.deliveroo.co.uk/media/deliveroo-announces-…
Seems pretty disgraceful to rug-pull all their Australian customers, employees, contractors and restaurant partners like this when clearly they didn't have to for NL. They should probably take "roo" out of their name..

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Comments

  • +48

    Just received the same. Glad my Plus membership was free.

      • +104

        I’m about to make a bold statement

        statement

      • +4

        So it was all your fault..

          • +1

            @jv: A world without your stupid bold comments would be a better world.

    • +1

      They probably charged the credit card companies for the complimentary plus memberships that were offered, and now those credit card companies will be owed by Deliveroo, too :|

      • Don't think so, sign-up was via Mastercard.

  • +24

    Oh no. Our gift cards are now worthless.

  • +10

    Me too .. everyones been selling a glut of reduced deliveroo vouchers recently as well!

  • +1

    Also got the same, wtf…

  • +21

    gift cards on credit on deliverooo is now worthless
    I've I've been deliveroooooo'ed!

    • +1

      For those with creditor:

      I have a credit on my customer account. Will it be refunded?

      Customers with credits on their accounts will not be refunded for this amount. Such customers are deemed to be
      unsecured creditors in the Administration and should submit a Proof of Debt form. Further information on how to lodge a
      Proof of Debt form will be provided in due course.

      • +6

        Good luck with that. Lost a couple of hundred in gc's when the real Dick Smith went belly up years ago.

        • +8

          Such a shame that Kogan is wearing their skin like a coat, it was an iconic brand, even if the stores sucked in the 2010's.

    • +6
      • deliver-root-ed :(
    • -1

      I've I've been deliveroooooo'ed!

      I think you mean deliverooted.

  • +8

    Probably because all of their VIP members recently cancelled their memberships and then got 12 months premium for free through their bank CC…

    RIP Deliveroo; you were actually my favourite…

    • they were offering that so aggressively though?

  • +12

    Yay, 30% cheaper takeout.

  • +2

    wait i was gonna order dinner off there tonight?!?!?!

    • Try new novel idea……cook

      • What's this fire you speak of ?

  • +2

    RIP deliveroo

  • +23

    What the heck! Ordered $200 worth of Deliveroo gift cards last week!

    • yes, I have a fair amount of credit too due to the deals through Shopback!

      • +4

        Me too.

        Rotten of them to not give us at least a week notice

        • +21

          lol, then they wouldn't have been able to sucker us into buying worthless credit

    • +2

      Haiyaaaaaa

    • +3

      Should have learnt to cook your own rice :(

  • +2

    Is there any type of consumer protection for people who bought gift cards?

    • +13

      If you paid via your credit card, you may be able to try and do a chargeback to get a refund.

      • Wouldn't the charge back be against the gift card reseller though? Not their fault they shut down?

        • -2

          Doesn't really matter

          • -1

            @JimB: I mean it will to the person (not) approving the chargeback…

          • +10

            @JimB: If you have a gift card from an insolvent company or paid them a deposit using a credit card, you MAY have chargeback rights. This means you may be able to get your money back from your credit card issuer. Contact the credit card issuer straight away as there are conditions and time limits on making a chargeback claim.

            https://asic.gov.au/for-consumers/dealing-with-insolvent-com…

            Worth a try if you bought a large gift card recently…

            • +2

              @Agent Q: I agree, I mean it doesn't matter if you purchased direct or through a reseller.

              • +1

                @JimB: I bought via Shopback and credit card statement showing as shopback transaction. will this be honored? may need to check with shopback rep to see if they can do something.

            • +1

              @Agent Q: I used Zippay to buy these gift cards. Just read their Buyer's Protection and I think I'm f**ked:

              The ZIP Buyer Protection Policy will not protect you:


              For Zip Transactions used to purchase Gift cards;

              (https://zip.co/au/page/buyers-protection)

      • -4

        Chargebacks shouldn’t work. You paid for a gift card. You received a valid gift card. End of transaction.
        This is why gift cards are not the same as cash. There is always this risk. Such is life.

        • +6

          I bought giftcards from Mothercare who went insolvent, and AMEX processed my chargebacks in full at the time.

          Really depends.

          You MIGHT have better luck trying to chargeback against someone like Shopback given they are still in business.

        • If you havent redeemed it, then no you havent received what you paid for. If you redeemed it then maybe you could argue that you received what you paid for, but I think its still debatable.

          • +4

            @CheapBrah: Of course you have received what you paid for. You paid for $x of credit with a retailer. You still have that, but the retailer is now insolvent.

            • +4

              @brendanm: You have purchased $X credit redeeemable by date Y. That credit is no longer redeemable for $X by date Y. You have not got what you paid for.

              • +2

                @CheapBrah: Yep, and you could have done that, had the retailer not gone under. The retailer has gone under. There is no money to give, as you are an "unsecured creditor". Read the terms and conditions on your gift cards. Also, don't buy gift cards.

          • +1

            @CheapBrah: Ok.. so how could the bank verify whether you have redeemed it? Company went under so they can’t contact them. You’re only getting your money back from the poor soul who sold you the gift card who held up his end of deal. Definitely not a black and white situation like you make it sound.

            • +2

              @Ridiculous Panda: It's part of the business of selling a product. Just like if youre a business selling toasters, you know that some will have issues and you'll have to refund them. So you provision for it as part of your business expenses.

              • +3

                @CheapBrah: That's not at all comparable, the toaster would be covered by the manufacturers warranty so while the merchant might initially honor the refund the merchant would then claim that back from the manufacturer. The manufacturer is the one that would have an idea of failure rate and factor that into their costings, not really relevant to a merchant. Now in this case it could not or should not be expected that shopback would factor in that Deliveroo would go belly up and that they would need to refund prob many thousands of dollars of gift cards. As far as a chargeback goes the bank will give shopback a right of reply, shopback will be able to prove that the giftcards were sent and they met their side of the transaction, imo the bank will agree with the merchant here.

                • @donkcat: if the toaster manufacturer goes bankrupt, the merchant is still liable for the warranty regardless.. even if they can't claim anything back off the manufacturer

                  • @Thrawn: They aren’t liable for the warranty but they may be subject to the consumer guarantee

              • @CheapBrah: No. This is not the same. You paid for $x of credit at X retailer. You received it, and it was valid. Transaction complete.

    • +8

      There have been calls (every time this happens) for gift card cash to be held in a trust account. Dick Smith Electronics 'kept' a tonne of cash on owing gift card when they went under.

      Sadly I don't think it would work well for consumers. If you bought a $100 gift card on special for $90, the company would need to hold $100 in a trust account until used or expiry. I cannot see that working economically.

      • You wouldn't get the discounts if that was the case

        • +2

          Exactly. It's discounts with no protections, or no discounts with protections.

          You can't have both.

        • +2

          Exactly right.

          People who buy gift cards should know you’re not getting 25% off through charity, you’re taking credit risk! And now it’s a credit event, sucks big time!

      • +1

        I applied and got nothing back then. Lost $200-300 in DSE.

        Gambled and lost.

      • Perhaps people will learn not to buy gift cards? It's free money for retailers, they are bad for consumers all round.

        • +4

          I only buy what I intend to use in the near future if not immediately.

          • @Ridiculous Panda: Then you need to refund something and buy from somewhere else, you are stuck with gift card. someone steals the balance, not the retailer's problem etc etc. They benefit the retailers, that's why they offer it.

  • At least my Plus was free. And I just spent the last of my credit from a botched order.

    Sorry to see the competition go though, it's a difficult industry

  • +19

    Had 96 cents credit left! Almost bought the $200 gift card last week but it was sold out… feel sorry anyone who did :(

  • Literally used $15 credit sitting on my account last night on a whim… but a shame to see competition go, now Uber Eats will raise prices and lower pay

  • +9

    I send my condolences to those who have recently purchased gift cards.

  • +2

    Well that's beautiful. I assume unsecured creditors are last in line after suppliers and such. Fat chance seeing my money again.

    • +2

      I assume unsecured creditors are last in line after suppliers and such.

      Yes. If secured creditors are getting c in the $, unsecured are getting nothing.

      • +2

        well my "how much I saved using ozb" number has jumped greatly now

    • +1

      Unfortunately, unlike a normal company - what assets does a company like Deliveroo even have to sell?

      • -3

        what assets does a company like Deliveroo even have to sell?

        e-bikes ?

        • Pretty sure they belong/bought by the riders.

          Maybe Deliveroo could just become a Merch store selling their jackets?

      • Their customer database.

      • their webservers/code (maybe)?

  • +12

    Well that sucks. $100 on credit, and $200 GC unused

    • similar here

    • Far out! That's gotta sting.

      It is one reason why I never hold onto any GC longer than required. Never know who is experiencing difficulties and in the hands of administrators at a whim.

      • +1

        It just so happens that I bought the $200 promotion last week so have more than I normally hold. Normally hold $50-$100 at most for stuff like this. Only exception is airbnb. but yeah (profanity) =//

        • I've never bought Food Deliv vouchers ever, that Deliveroo promo was my first! WOW

          (followed by UberEats voucher which I only bought the same value of my food order.)

      • I never hold onto any GC longer than required

        How long is that?

        • Depending on the merchant. So far I only have active GC balance with Woolworths $300), Coles ($500), and Ampol ($1500). Amazon I keep about $100, unless I've got something on my wish list.

          • @t25: $1500 on Ampol? Do you run your own trucking company or something?

            • +1

              @PhatTofu: I have a fleet of vehicles that use Ampol regularly (they have the best prices near me)

            • @PhatTofu: Thats 6 fillups for my Amarok…

    • -1

      Ouch !!!

  • Had $37 in credit sitting there.

  • +13

    Well, this tells me not to stock up on DoorDash GC…

    • I'd widen the net to include Menulog, UE, and whatever other platform is currently running at the moment.

      • +5

        Uber is pretty safe I'd say, especially given the credit works across all of uber and not just eats. The others though…

        • +1

          except the fact that uber is a loss making company for many years now…

        • Menulog (which is popular in other countries too but go by other names) should be good too.

          • +2

            @Nillionaire: Deliveroo operates in 12 countries and that didn't stop them from pulling out of Oz..

    • +1

      I have stopped Doordash GC and paused the membership…simply because it's just 30% more expensive to order from them..yeah but good point

      I guess Woolies / Coles GC / Amazon / Ampo are safe though? I wouldn't keep more than a couple hundred on each max though

      • -1

        I guess Woolies / Coles GC / Amazon / Ampo are safe though?

        Think again…

  • +7

    I feel for the restaurants. There must be more than a few that have a huge amount owing.

  • +1

    For me $44.30 balance and $100 gift card not loaded. At least got the $25 cashback from Shopback already confirmed, so is like $75 loss on the gift card.

    • Do you think Shopback will honour the cashback now even though it may have been confirmed?

      • +2

        mine just went cleared today, so I had already withdrawn it

      • Confirmed status says "bonus is now confirmed and $25.00 has been added to your available balance".
        If Pending then may have been unlikely.

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