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Why is Menulog shutting down its food delivery operations in Australia?

Menulog is shutting down its Australian food delivery service after years of financial losses and increasing market pressures, with the company citing challenging conditions as the reason for the closure.
  • SYDNEY, AUSTRALIA - APRIL 02: A Menuelog scooter used for take away delivery. Everyday Australian's have been under cost-of-living pressure, in Sydney, Australia at Glebe. (Photo by Steve Christo - Corbis/Corbis via Getty Images)
    SYDNEY, AUSTRALIA - APRIL 02: A Menuelog scooter used for take away delivery. Everyday Australian's have been under cost-of-living pressure, in Sydney, Australia at Glebe. (Photo by Steve Christo - Corbis/Corbis via Getty Images)

    Menulog announced it will wind down its Australian food‑delivery service this month, ending one of the country's longest‑running platforms. The company said the app and website will stop taking orders on November 26, citing market headwinds, competition from overseas rivals and the difficulty of staying profitable in an increasingly crowded sector.

    After years of battling to keep growth alive and stay relevant, launching every marketing push and promo stunt imaginable, the company finally admitted that the competitive pressures were simply too heavy to maintain a presence.


    Menulog shuts down, ending its run in Australia's delivery market

    Menulog has announced that it will shutter its operations, putting an end to a long‑running chapter for one of the country's homegrown delivery platforms. The decision follows years of losses and a steep drop in market share as Uber Eats and DoorDash proved formidable to beat. The company said (via The Sydney Morning Herald):

    "As the only Australian-born platform, Menulog has a proud history but ultimately, as a business we have been navigating challenging circumstances and the decision was made to close local operations..."

    Prosus, the parent company that acquired Just Eat Takeaway.com this year, said the move fits into a strategy to focus on European markets rather than reflecting the performance of the Australian business. 120 staff members are set to receive redundancy packages and both couriers and customers will have a window to claim any outstanding payments and credits, as reported by The Sydney Morning Herald.

    Menulog's departure follows cuts and years of attempts to revive the brand through celebrity campaigns, none of which ever yielded profitability. With its exit, Australia’s food‑delivery market is now effectively dominated by two players, sparking renewed discussion about fair competition, gig‑worker protections and the industry's future.


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    TOPICS: Menulog