Foodora shutting down operations in Canada

Foodora couriers in Toronto want union certification to create Canada's first unionized workforce in the gig economy. (File photo)

VANCOUVER — Food delivery service Foodora has announced it is shutting down operations in Canada on May 11, citing strong competition and a highly saturated market.

In a release, the company said it "has not been able to reach a level of profitability in Canada that’s sustainable enough to continue operations."

It announced the plan to close on April 27, five years after launching. The release said the company, owned by Germany’s Delivery Hero, is putting together a proposal "to provide additional recovery to employees and other creditors" but the details of the proposal "have not yet been determined."

All of Foodora's employees, including bike delivery personnel, were given their notice Monday. They had won the right from the Ontario Labour Relations Board to unionize earlier this year.

The service is currently available in 10 Canadian cities, and will be accepting orders up until 11:59 p.m. on May 11.

It will continue operations in other countries, including Finland, Austria, Sweden and Norway. Delivery Hero also operates Foodpanda in ten other countries.