Foodora begins bankruptcy proceedings, cites $4.7 million in debt

The food delivery app is set to close operations in Canada on May 11th


Foodora has started its bankruptcy proceedings and has declared $4.7 million CAD in debt, following its recent and abrupt announcement that it was leaving Canada.

The Toronto Star reports that the food delivery app’s exit comes two months after its workers in Toronto were able to be recognized for their right to unionize by the provincial labour board.

The Canadian Union of Postal Workers (CUPW) has filed a complaint to the board alleging that Foodora is leaving the country because it wants to “defeat a union organizing drive.”

“Foodora may try to cut and run, but they can’t hide from their responsibilities. These couriers don’t deserve to be abandoned in the uncertainty of a pandemic. They have rights and we’ll stand up for them,” CUPW’s president told the Star.

The company has denied the claims and stated that it is not leaving the Canadian market due to its ongoing legal dispute with CUPW.

“Rather, we have tried different ways of making our business work in major markets across Canada, including trialing logistics as a service, focusing on specific segments and new verticals, and many other tactics. Unfortunately, these strategies have not generated the desired results over time,” Foodora told the Star. 

Although Foodora workers weren’t part of a union yet, they were the first food delivery app workforce in Canada to get significantly closer to it.

Foodora is set to cease operations in Canada effective at the end of the day on May 11th.

Source: The Toronto Star