British meal delivery company Deliveroo has announced it will be ending its operations in neighbouring the Netherlands. What does this mean for its future in Belgium, where it recently saw public demand for its services dropping?
Deliveroo announced on Wednesday that it has started consultations to end operations in the Netherlands, of which the market during the first half of this year represented just 1% of the company's revenue at a time when it is focused on "maximising returns on investment while meeting existing profitability targets against a challenging economic backdrop."
"Deliveroo has determined that achieving and sustaining a top-tier market position would require a disproportionate level of investment with uncertain long-term returns," a company statement read. It is expected that the departure will be finalised by the end of November.
The company, which said it is currently operating in 11 markets, noted that the vast majority of its revenues come from markets where Deliveroo holds a first or second market position.
What about Belgium?
This announcement following the news that Deliveroo revised its revenue forecasts for this year in Belgium downwards as rising food prices are driving a decrease in public demand for its services seems to be a warning sign for the future's company in the country.
However, its spokesperson Rodolphe Van Nuffel told The Brussels Times that the announcement only concerns the Netherlands and does not impact any other market.
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"The Belgian business is not impacted by this decision. Belgium and the Netherlands are different markets, with different consumer behaviour and market dynamics," he said.
Van Nuffel added that in Belgium, Deliveroo is expanding to new cities. It is also looking to further develop its existing partnerships with restaurants — like spaghetti chain Bavet and a local favourite in Brussels, MyTannour — and grocery partners (Carrefour or Brussels Beer Project).
