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Foodora to shut down in Canada amid profitability challenges

Competitive and saturated market led to the food delivery app's decision to cease operations in Canada

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

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. Foodora also entered the grocery space in 2018 through a partnership with Montreal's upscale grocery retailer Alexis Le Gourmand to offer delivery of 18 local beer and wine brands.

And, in 2018, Foodora partnered with 7-Eleven Canada to deliver snacks and Slurpees to customers in Toronto, Vancouver, Calgary and Edmonton.

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