Foodora will wrap up its Australian operations by the end of the month amid accusations it’s abandoning its obligations to workers owed back pay.
The company will cease operations on August 20 to focus on markets with “higher potential for growth”.
The Fair Work Ombudsman took the food delivery company to the Federal Court in June alleging two Melbourne bike riders and a Sydney driver were classed as “independent contractors” when they did the work of full-time employees.
Another rider appealed to the Fair Work Commission saying he was unfairly dismissed after speaking out over low pay and poor condition for delivery riders.
His campaign attracted the attention of the Transport Workers Union which on Thursday accused Foodora of abandoning Australia while owing millions of dollars in back pay.
Foodora denied the accusations, noting it was divesting out of France, Italy and the Netherlands at the same time.
The company says it will continue to deal with its legal battles in Australia.