Delivr app: UberEats, Deliveroo competitor collapses, 200 jobs lost as Ballarat start-up goes under

UberEats and Deliveroo rival suddenly COLLAPSES: Australia’s ‘only’ locally owned food delivery app goes into liquidation with 200 workers losing their jobs

  • Australian food delivery service Delivr has collapsed with 200 people out of jobs 
  • Founder Alex Power said driver shortages and rising cost of living contributed 
  • Australia’s business regulator ASIC has been notified liquidators are appointed 

The Australian-owned rival to international food delivery giants UberEats and Deliveroo has collapsed, leaving up to 200 workers without jobs. 

Delivr – founded in 2017 in Ballarat, Victoria – notified Australia’s business regulator ASIC that it had appointed liquidators on July 20.

At its height, the company contracted 200 staff including delivery drivers and had 18,000 customers but despite the food delivery boom during lockdowns, it was unable to generate enough revenue to stay afloat.

The start-up was founded by university student Alex Power, who arrived from South Africa to study mining engineering and noticed regional areas in Australia were underserved by the big food delivery players. 

Delivr quickly grew over the course of lockdowns developing partnerships with Grill’d and Schnitz restaurant chains but the ‘last 10 months have been difficult’

Starting out in his local area of Ballarat, Mr Power formed partnerships with chains such as Grill’d, La Porchetta and Schnitz and expanded the start-up. 

Since 2017 the business has done about $6million worth of sales. 

Mr Power put the collapse of the company down to driver shortages which ‘drove our cost per delivery through the roof as we competed with the giants for the driver audience’.

As a result, the company offered $100 signing bonuses for drivers in June this year.

In a statement to Smart Company, Mr Power said increased interest rates pushing up mortgages had also put pressure on households and, as a result, ‘sales have floundered’, leaving Delivr ‘untenable’ to continue as a business.

Mr Power has also confirmed he is the only person directly employed by Delivr, with customer support staff and drivers working on a contract basis. 

He said the larger international food delivery companies had enough capital behind them that they could keep operating despite the ‘incredibly’ tough market conditions. 

In 2022, grocery delivery start-ups Quicko and SEND both closed down, while competitor Milkrun dropped their 10-minute delivery guarantee due to driver shortages and rising costs. 

The company, Australia's only locally-owned food delivery service, notified ASIC it had appointed liquidators on July 20

The company, Australia’s only locally-owned food delivery service, notified ASIC it had appointed liquidators on July 20