Food delivery service Foodora will stop operating in Australia this month after three years bringing meals to the nation's doorsteps.
"The company, which has been a part of the Australian market since 2015, will start winding down services and close by August 20th, 2018".
The company said it will work to ensure its 41 employees find suitable alternative roles, and expressed its support for partners and contractors during the transition period.
It had been competing against others in the food delivery industry including Uber Eats and Deliveroo. In July, former food delivery rider Josh Klooger claimed he was unfairly dismissed. It said it misrepresented regular employees as independent contractors.
"Foodora would rather pull out of Australia and leave thousands of riders without work rather than pay them the millions of dollars they owe". Josh Klooger said he was sacked by the company for publicly talking about his pay and conditions.
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Reactions from the riders about the news are more positive than negative.
"It is imperative that Foodora pays compensation to its riders. It's like a dream come true".
In light of these issues, Foodora spokesperson told the ABC that "Foodora will continue to manage legal proceedings locally in Australia and will continue to treat them with the utmost importance". He said when he was hit by a vehicle on a Melbourne street while on the job two weeks ago, the company refused to pay for his medical expenses because it apparently was "not our responsibility" as he was not an employee. He did not believe the company's reason for leaving Australia.
The company plans to focus on areas where there is higher growth.
"I don't know what to say ..."
Unions NSW assistant secretary Thomas Costa told reporters in Sydney companies like Foodora moved their money offshore when challenged in the courts.