FOOD delivery service Deliveroo has announced it will cease operating in Spain citing huge economic losses since the start of the pandemic.
The company reported a loss of €23 during 2020 and 2021 and was hit by a change in legislation by Spain’s government to give gig economy workers greater employment rights.
The London-based company said they were not willing to lose any more money in Spain and didn’t have a big enough market share to make investment worth it.
The take-away app company has larger rivals in Spain including Glovo, Just Eat and Uber Eats.
A spokesperson from Deliveroo said “Achieving and maintaining a top-tier market position in Spain would require a disproportionate level of investment with a very uncertain long-term potential return that could affect the economic viability of the market for the Group,”
Deliveroo had a workforce in Spain of at least 3,800 riders who were registered as employed with the company.
According to Business Insider, most of the delivery companies grew as a consequence of the pandemic. However, Deliveroo did not.
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