Food delivery company Menulog has announced it will cease operations in Australia after 20 years, with the final orders to be taken on November 26. The company stated that around 120 employees will be affected, and it has offered redundancy packages and employment support. Eligible couriers will receive a four-week voluntary payment.
Menulog's chief executive Morten Belling described the decision as tough, noting it was not taken lightly. Customers with unused credits or vouchers are urged to use them before the closure date. The company's exit raises questions about the competitiveness of Australia's food delivery market, according to Alex Veen, a senior lecturer at the University of Sydney Business School.
Menulog's market share has declined significantly from about 80% in 2014 to less than 25%, as rivals like Uber Eats and DoorDash diversified into grocery deliveries. Dr. Veen warned that the market could become a duopoly or monopoly, similar to Australia's supermarket and ride-share sectors.
Restaurant & Catering Australia national president John Hart said the loss will hit areas not serviced by Uber Eats the hardest, and restaurants may need to reconsider delivery options. The Transport Workers' Union called for remaining companies to ensure decent standards, with national secretary Michael Kaine blaming previous government inaction for exploitative conditions.
Industry analyst Joshua Campbell from IBISWorld noted that while online food delivery continues to grow, intense competition and high operational costs pose challenges, especially for smaller operators. Menulog generated $244.62 million in revenue in 2024 but said it will focus on growth in other markets.
