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

dm02 on 16/11/2022 - 16:39
Last edited 16/11/2022 - 18:13 by 1 other user

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

                • Homr on 16/11/2022 - 22:17

                  @capslock: so money left to be paid to creditors will be company cash at bank amount minus administrators fees?

                  • jackking on 16/11/2022 - 23:44
                    +1

                    @Homr: Yep pretty much. Waterfall of payments is employes -> administrator -> senior creditors (bank debt and loans) -> unsecured creditors. They will give a fee estimate in first meeting. Bare minimum would be $2-5m imo. Every time a customer/ restaurant calls them about credit or something, their analyst will charge $300per hour. Partners charge as high as 600-1k per hr even for meetings they attend. So administrators are heavily incentivised to log max hours

    • Homr on 16/11/2022 - 20:15

      Yeh I too think the new employment laws played a huge role in their collapse. Their workers comp premium and claims would've went up big time.

      Anyone know how much the drivers were paid? Was it the award minimum wage?

  • Morphio25 on 16/11/2022 - 18:51

    Good, hopefully it means a few less twats on bikes riding dangerously around pedestrians in the CBD.

    • jellykingdom on 16/11/2022 - 19:19

      I think it was a Deliveroo guy on a bicycle in the M5 tunnel this morning at 7am. He was getting blasted!

    • SirCH on 16/11/2022 - 21:55
      +5

      You know that there's the same number of restaurants, the same number of riders and the same number of hungry people, yeah? There's just 1 less app.

      • Morphio25 on 17/11/2022 - 06:58

        Not necessarily. The Deliveroo riders might choose not take up work with one of the other apps.

        • xsacha on 17/11/2022 - 13:45

          Just like the Uber drivers wouldn't also be doing Ola and Didi, right? ;)

        • samfisher5986 on 17/11/2022 - 14:15

          That makes no sense, why wouldn't they? Its the same thing different name.

  • umoddbro on 16/11/2022 - 18:58

    It was a no brainer they weren't gonna survive, there's usually only a handful of restaurants on deliveroo compared to menulog, doordash and ubereats. I don't think I've ever paid full price on deliveroo, they had the year free plus membership and would occasionally send out vouchers such as the (5x $30) a few months ago. I reckon next in line is menulog or ubereats… doordash seems to be taking over the food delivery market.

    • Homr on 16/11/2022 - 19:24

      ubereats won't go down that easily, they still have revenue from original uber

      • spc12go on 17/11/2022 - 01:40
        -2

        the same was said about Enron and Bear Stearns

  • Murderface on 16/11/2022 - 19:02
    +8

    I've lost roughly ~$200 in vouchers.

    It'll be interesting to see what the outcome is, the Shopback deal was pushed heavily with heavily marked-down vouchers. I find it hard to believe that Deliveroo was unaware of the impending financial troubles and it seems borderline criminal to sell vouchers when you're in financial difficulty knowing there's a very real possibility that you're not going to be able to fulfil your obligations.

    I don't want to dispute the transaction and leave Shopback with the bill, but what other options do I have here?

    @gotyourback thoughts?

  • GordonD on 16/11/2022 - 19:02
    +15

    I'm not a lawyer, but even I know there's two scenarios. Either a business makes a business decision to close down, or it is forced into receivership because its insolvent. The two variations of insolvency are being forced into insolvency by a creditor, or putting yourself into receivership before anyone forces you to avoid possible charges of continuing to trade whilst insolvent.

    The statement from Deliveroo implies they could have stayed in business by putting more money into the business, but they made the choice to put themselves into receivership, and let the administrator shut down the business.

    That sounds like they arranged their business affairs so that they could put themselves into receivership, because receivership meant they could walk away without having to reimburse their unsecured creditors.

    If that's not fraud, perhaps it ought to be.

    • dm02 on 16/11/2022 - 19:04
      +1

      I was thinking the same thing

    • happydude on 16/11/2022 - 19:46

      Flipside:

      If you were a shareholder (even via super) in BHP and they ended up $1 trillion dollars in debt and collapsed, should you have to sell your house to pay their debts?

      It's the same thing here. The UK parent shouldn't have to pay to debt.

      • SimpleLeverage on 16/11/2022 - 20:47
        +2

        Perhaps a better analogy is that this is like a company issuing $1 trillion of new debt, paying this as dividend to shareholders or some other party, then collapsing. Whoever bought the new debt would be pretty keen to claw it back.

        • happydude on 16/11/2022 - 20:56

          In this case the parent is issuing a compensation package for creditors via a DOCA, which they are under no obligation to do.

          Also in this case dividends cannot be paid unless you have a net asset position, something I'm sure Deliveroo AU did not have.

          No one has run off to the Bahamas with gift card money from one promotion.

          It also wasn't an analogy, I was highlighting that corporate veils also have a protective affect on small time investors.

      • GordonD on 16/11/2022 - 21:01
        +1

        If a person dies - and its the same with a business - that's bad luck not just for them but also for everyone that owes them money. But when they decide to leave town its dishonesty if they don't pay ALL their debts before they go.

  • capslock janitor on 16/11/2022 - 19:16
    +1

    ominously tweeted at 4:44

    but it doesnt really matter now lol

    • freestyle18 on 16/11/2022 - 19:49

      the social media person must be chinese heh

  • gromit on 16/11/2022 - 19:33
    +3

    Another one bites the dust, can't say I am sad to see any of these broken business model blood suckers gone. Feel for those out of work though.

  • Bappy on 16/11/2022 - 19:33
    +5

    How do you cancel Deliveroo Plus subscription?
    I can access my account using their app, I have removed by primary card (VISA) however the Master Card I used to sign-up for free Deliveroo Plus is not showing anywhere in my account, also cannot find any option to cancel the Plus subscription

    Thanks

    • Tarapara on 17/11/2022 - 10:19
      +1

      Following, same boat.
      Edit:
      Anyone wanting to be careful and wanting to cancel your Deliveroo Plus Membership. Here is how.
      On the app, go to Payment Methods>Edit>Delete your CC. You shouls get an error prompt "this is associated with your delivery plus subscription". On the same screen, click on 'Manage Subscription' This will take you to the Delivery Plus part. Click Cancel Subscription.
      As an added measure, go back to Payment Methods and remove CC.

      • Bappy on 17/11/2022 - 13:53

        Yeah that's valid if your Master Card (that you used to signed up for Deliveroo Plus) was also your main payment method

        In my case my main payment method was a different card (VISA) however I used my Master Card to sign-up with Deliveroo Plus.
        And nowhere in the settings I could find an option to cancel the Plus subscription or remove my master card

        At least when I login to Deliveroo, I dont see 'Deliveroo Plus' logo/badge anymore…

    • capslock janitor on 17/11/2022 - 18:12

      got an email at 5pm yesterday that my membership was cancelled, i didnt have to do anythin ..
      then i went in-app to manually remove payment maethods

  • ChadHominem on 16/11/2022 - 19:40
    +2

    Help, I’m an iOS user and I can’t seem to access options to delete my paid Deliveroo plus subscription. Has anyone else managed this?

    I tried to delete my credit card and it says
    “This card is linked to Deliveroo Plus
    Change your card or add a new card before removing”
    And then gives me the option to Manage Subscription or Cancel
    But when I press manage subscription it glitches the page and I can’t continue
    No luck in desktop browser also

    • Deals For Days on 16/11/2022 - 20:17
      +2

      I just deleted my account. Not much else you can do

      • ChadHominem on 16/11/2022 - 22:08

        I thought about doing that but then I worried that if I was still being charged somehow and I contacted someone about it they might ask for my account details and I wouldn’t have any 😬

        It’s a weird situation

        • Tarapara on 17/11/2022 - 10:19
          +1

          Same boat, please let me know if you find out. Thanks
          Edit:
          Anyone wanting to be careful and wanting to cancel your Deliveroo Plus Membership. Here is how. At least worked on my Android.
          On the app, go to Payment Methods>Edit>Delete your CC. You shouls get an error prompt "this is associated with your delivery plus subscription". On the same screen, click on 'Manage Subscription' This will take you to the Delivery Plus part. Click Cancel Subscription.
          As an added measure, go back to Payment Methods and remove CC.

          • ChadHominem on 18/11/2022 - 10:46
            +1

            @Tarapara: I borrowed an android device from a friend to do this. Thanks, problem solved

  • Homr on 16/11/2022 - 19:52

    Is this the Lehman brothers of food delivery?

    • dm02 on 16/11/2022 - 19:55
      +3

      Maybe the FTX of food delivery

      • Homr on 16/11/2022 - 20:00

        but FTX was the Lehman brothers in crypto

  • wab on 16/11/2022 - 20:00
    +5

    Shopback wouldn’t have known.

    I’ve been apart of the affiliate program and when our directors made the decision to stop the affiliate program it’s immediately actioned by shopback and cashrewards. If the notice was given, shopback would have taken them offline sooner.

    Disgusting by Deliveroo

  • ShadowStealer7 on 16/11/2022 - 20:10

    Trying to delete my account and nothing happens, happening to anyone else?

    • QF99 on 16/11/2022 - 20:40

      Yeah, it just spins for me when I try to delete my account. Was able to cancel the subscription and unlink my mastercard, through an android phone. If you don't have an android phone, would bluestacks work? Could someone confirm that

      • Bappy on 16/11/2022 - 20:49
        +1

        Could you please kindly advise how you managed to unlink your Mastercard and cancel the Plus subscription?

        I have tried on on both Android/iOS apps and also on Chrome Browser (both Windows and Android) but cannot find any option to cancel the Plus subscription

        I have managed to remove by primary card (VISA) however the Master Card I used to sign-up for free Deliveroo Plus is not showing anywhere in my account,

        • QF99 on 16/11/2022 - 21:01
          +1

          ah I just deleted the app, will reinstall to see what I did

        • QF99 on 16/11/2022 - 21:11
          +4

          Went to my details > payment methods. When I tried to get rid of the mastercard, it asked me to cancel the plus subscription. Once I did that, I was able to unlink my mastercard. They may of changed some things between then, hope it helps

          • Bappy on 16/11/2022 - 21:25

            @QF99: Ahh ok, I don't have any of those options for some reason.

            Thanks anyway

  • Herbse on 16/11/2022 - 20:22
    +1

    Expect more to follow

    • Homr on 16/11/2022 - 20:37

      like who?

      doordash, menulog, ubereats, easi?

      • gromit on 16/11/2022 - 22:21
        +1

        They are all losing money. The business model is fundamentally broken. Once enough die prices will go way up.

        • iSamurai on 17/11/2022 - 02:37

          Funny how I just watched this video last week on food delivery services being unsustainable: https://www.youtube.com/watch?v=IlZ51zeabhM

        • samfisher5986 on 17/11/2022 - 14:18

          The business model is easily profitable, its just not so easy when everyone is throwing huge amounts of money to be aggressive.

          Once there is no need to be aggressive, probably when another company goes bankrupt, they will switch to a profit driven model.

          • gromit on 17/11/2022 - 14:24

            @samfisher5986: yes it will be profitable, once more die the prices will go up to make it profitable.

            • samfisher5986 on 17/11/2022 - 14:34

              @gromit: The prices don't even necessarily have to go up, there is plenty of profit margin already.

              30% + Service Fee + Delivery Fee is a huge profit margin when you don't have insane advertising spends, misuse of funds and throwing huge vouchers at every second customer and every new customer.

              • gromit on 17/11/2022 - 17:26

                @samfisher5986: while some of those costs will reduce, investors will be looking to recoup years of billions going down the proverbial. Prices will rise and once competition has gone those rises will likely be pretty significant.

      • star-ggg on 16/11/2022 - 22:53

        Shopback

  • peterpeterpumpkin on 16/11/2022 - 20:27

    I never had a chance to try Deliveroo as a paying customer. They kept sending me vouchers to come back.

    • tajid on 16/11/2022 - 21:27
      +2

      Neither did I and due to sheer luck and stupidity, I bought $500 gift cards in the last 2 weeks….

      • capslock janitor on 17/11/2022 - 18:18

        no kiddin, that was my very first time buying a food deliv gc, and i got stung for it ..

  • GourmetFoodie on 16/11/2022 - 20:40
    +3

    I deleted my Deliveroo account about a year ago when that security flaw was exposed and heaps of people were getting their accounts hacked and food ordered through their linked credit cards.

    I do miss the glory days about 5 years ago when they first entered the market though! Got some great deals and great food. I’ve gone off food delivery since covid and seeing how dirty most of the drivers are.

    Good lesson to review all my outstanding gift cards from different places. Will do that tonight as I’ve been a bit slack lately about using them up quickly which is always the wisest approach as many people have noted.

  • capslock on 16/11/2022 - 20:41
    +1

    Shopback has 10% cashback on gift cards for Easi and HungryPanda.

  • AustriaBargain on 16/11/2022 - 20:53

    Big lol.

  • Stopback on 16/11/2022 - 20:56

    Should of given people one day notice.

    Imagine the order fests that would happen

    • Thrawn on 16/11/2022 - 21:57
      +1

      With notice all the delivery people and restaurants would pull out… they ain't working for free

    • capslock janitor on 17/11/2022 - 18:21

      fests

      so much for their current FEASTIVAL event emails too ..

      Join us in celebrating The Feastival and enjoy 20% off FISHBOWL, Zeus, Red Rooster + Domino’s.*

      Simply spend $25+ to unlock the discount - but hurry, this deal is only available until the 27th of November.

      Get them all Deliveroo’d to your door with unlimited free delivery, thanks to Deliveroo Plus! T&Cs apply.

  • Vash1984 on 16/11/2022 - 21:07

    I suggest to check if you saved any credit card details and delete it. Never know if a hacker will take advantage while they are vulnerable.

    • Homr on 16/11/2022 - 21:14
      +1

      mine has saved credit card, but i can't delete it

      • Vash1984 on 16/11/2022 - 21:16

        I think because it's link to your subscription. Cancel subscription and then try.

        • Homr on 16/11/2022 - 21:16

          Thank you, I will try

        • dreamykitten on 16/11/2022 - 21:19

          I can't even see I have a subscription which I do online. I remember it was there before, with the date on which they are supposed to charge my linked credit card (got 6 months free with a previous deal). Because of that, I can't delete the saved credit card.

          • Vash1984 on 16/11/2022 - 21:20
            +1

            @dreamykitten: I used the app to cancel subscription, maybe different on computer.

            • dreamykitten on 16/11/2022 - 21:35

              @Vash1984: I tried using the app too. On iPhone.

              • Low Punt on 16/11/2022 - 21:39

                @dreamykitten: Same, can't see anyway on iPhone.
                @Vash1984 you on iPhone or Android, where was the option?
                Ty

              • nitens on 16/11/2022 - 21:45
                +1

                @dreamykitten: On android i went to payment methods
                Then hit edit
                Then hit the garbage can next to my cc
                Then it took me to the subscriptions page
                There i cancelled the subscrption
                Went back to the payment methods
                Then hit the garbage can on the cc and it was gone.

                Hope this helps.

                • dreamykitten on 16/11/2022 - 21:50
                  +1

                  @nitens: On the iOS app when you try to delete the credit card it says “linked to your subscription” and you can “manage subscription” but when you push that nothing happens, the app just glitches and kinda freezes.

                  • nitens on 16/11/2022 - 22:28

                    @dreamykitten: Damn… thats anoying.

                    Not usually that way around… android working better than iOS

          • Homr on 16/11/2022 - 22:19

            @dreamykitten: same, I had few credit cards loaded in. I can delete all of them but cant delete the last one

            • nitens on 16/11/2022 - 22:29

              @Homr: Thats what i had and had to cancel my deliveroo plus subscription, then i could delete the last one.

  • FittyFitty on 16/11/2022 - 21:36
    +1

    Delivewho?

  • Doyen on 16/11/2022 - 21:45

    Make sure you delete your data and close your account. Your personal data is what the administrators will be trying to sell, and to who knows who.

    • Homr on 16/11/2022 - 22:13

      Administrators can sell data? that legal?

      • superuser on 17/11/2022 - 01:15

        They can sell it and who knows?

    • capslock janitor on 17/11/2022 - 18:25

      how delete datas?

    • Teh White Mamba on 18/11/2022 - 15:53

      Too late I’m already getting scammers pretending to be Deliveroo drivers contacting me data has been sold.

  • ass3ts on 16/11/2022 - 22:08

    Would this mean fewer cyclists with no light wearing all black zigzagging at night?

    • str1k34 on 16/11/2022 - 22:23

      no they usually work multiple platforms anyhow

    • ankti231 on 18/11/2022 - 10:31

      It probably means more given the free Deliveroo uniform is light blue and extremely reflective

  • MarsTitan on 16/11/2022 - 22:35
    +2

    Reminds me to use my ubereats and doordash credit. They maybe next..

    • garetz on 16/11/2022 - 22:37
      +1

      Menulog's days are numbered.

    • Jared17 on 18/11/2022 - 00:47

      I always thought doordash will be first to go even though I actually prefer their CS from the others

  • Drpepper666 on 16/11/2022 - 23:41

    Oof they've had lots of promos recently. Big sad to everyone who got caught out, risk of gift card excluded that's pretty brutal and unexpected.

  • MissP on 17/11/2022 - 00:17
    +3

    Tried contacting shopback thru the app help bot and it came up with a top of the list "deliveroo gift card matter" option.
    Have been allocated a case #.
    Good luck to us all getting that money back🍀🤞

    • Serapis on 18/11/2022 - 13:06

      Did the same, good luck!

      • MissP on 19/11/2022 - 14:30

        Got the same "we are as shocked as you" press release from SB.
        Completed a chargeback claim with my bank as reccommended in the thread and it was processed next day - charges reversed and refunded.

        • Serapis on 20/11/2022 - 20:19

          Did you get any restrictions or ban from Shopback?

          I have around 180 in pending cashback and don't want to lose that as chargeback will only get me ~100

  • superuser on 17/11/2022 - 01:13

    This loop shiet hole, the company still using this and the authority can't do anything.
    The company put stuffs on sales and then go bankruptcy.

  • Cluster on 17/11/2022 - 01:25
    +1

    Another reason to never buy gift cards

    • capslock janitor on 17/11/2022 - 18:27

      yeah nah ill still buy those cash giftcards from colesworth

      gotta use em up with gusto ..

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