Just two months after the Ontario Labour Relations Board cleared the way for Foodora couriers to unionize, the food-delivery app has announced it’s shutting shop in Canada.

In an email sent to workers, Foodora announced that the last day of operations in Canada will be May 11.

We regret to inform you that we have taken the difficult decision to exit the Canadian market and close down foodora Inc., the Canadian subsidiary of Delivery Hero SE.

In February, The Ontario Labour Relations Board ruled that Foodora couriers are “dependent contractors” of the food-delivery company^[1]
Canadian Union of Postal Workers v Foodora Inc. d.b.a. Foodora, 2020 CanLII 16750 (ON LRB), http://canlii.ca/t/j5nj1, retrieved on 2020-04-27.

The OLB ruled in the case Canadian Union of Postal Workers filed against Foodra Inc. that “when examining the level of integration, the couriers more closely resemble employees rather than independent contractors.”

“The couriers are selected by Foodora and required to deliver food on the terms and conditions determined by Foodora in accordance with Foodora’s standards,” Alternate Chair Matthew R. Wilson wrote in his ruling. “In a very real sense, the couriers work for Foodora, and not themselves.”

Being classified as a “dependent contractor” gave the couriers the legal right to organize and join a trade union.

“This decision shows that the tide is turning towards justice for thousands of gig workers in Ontario and soon these workers will have the right to their union,” Jan Simpson, CUPW National President, said when the ruling was issued. “CUPW is proud to be part of challenging the big app-based employers, and reshaping the future of work in favour of workers’ rights, safety, and respect.”

Foodora cites stiff competition and inability to “reach a level of profitability in Canada that’s sustainable enough to continue operations,” for their decision to cease operations in Canada.

“I’m very proud of what foodora has accomplished over the last few years. I’ve been able to witness food delivery grow from its infancy into what it is today, and helping to build a brand I’m proud of,” David Albert, Managing Director of Foodora Canada, said. “However, there’s been some challenges along the way. We’re faced with strong competition in the Canadian market, and operate a business that requires a high volume of transactions to turn a profit. We’ve been unable to get to a position which would allow us to continue to operate without having to continually absorb losses.”