BUSINESS
04/27/2020 15:08 EDT

Foodora Is Shutting Down In Canada

The platform provided access to 3,000 restaurants in 10 Canadian cities.

Thomas Trutschel via Getty Images
The Logo of online food delivery company foodora is displayed on a smartphone on December 14, 2018 in Berlin, Germany.

BERLIN ― Foodora says it is making plans to cease operations in Canada on May 11.

The Berlin-based food delivery app says it has not been able to reach a level of profitability in Canada that’s sustainable enough to continue operations.

It says the decision was made in part because it was competing against strong rivals and operating in a highly saturated market for online food delivery.

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Foodora says it was unable to get to a position that would allow it to continue to operate without having to continually absorb losses, and so it filed a notice of intention.

Foodora says it provided its Canadian workers with notice of the change today and is working on devising a proposal to provide additional recovery to employees and other creditors.

The business operated in 10 Canadian cities over the last five years and had racked up 3,000 restaurants on the platform.