Deliveroo food delivery company pulls out of Australia

Thousands of delivery riders and restaurants are feeling the fallout of the sudden demise of Deliveroo in Australia. One of the country's first meal delivery services announced it had entered voluntary administration late yesterday. The shock move has been slammed by unions, who say workers in the gig economy deserve better treatment.

Deliveroo has suspended its operations in Australia effective immediately after being placed under administration. Source: Getty / Matthew Horwood

In a statement, the U-K based company says it's pulling out of Australia after assessing the market.

Deliveroo will continue to operate overseas. Its decision to withdraw from Australia has been labelled as 'cynical' by the Australian Council of Trade Unions.

ACTU president, Michele O'Neil, has noted that the move came ahead of proposed new laws that would increase protections for workers in the gig economy.

"A company that has been making huge profits and just don't like the idea that the workers who are doing the hard work in that company get a fair deal. That's why they have pulled out of this country."

The Trade Workers Union is seeking an urgent meeting with administrators.

The union's Assistant National Secretary Nick McIntosh says riders aren't sure where they stand.

"This is an absolute kick in the guts for those 15,000 Deliveroo riders. Many of who rely on Deliveroo as their sole source of income, who have put their heart and soul into that job."