Shock, frustration as riders, users and eateries rue Deliveroo's exit

Experts say rivals may eventually raise prices amid reduced competition

- Esther Loi

Deliveroo announced on Feb 25 that it will stop operations in Singapore on March 4. Describing it as a "difficult situation", the food delivery platform said it had concluded that the level of investment needed for its operation here was not aligned with its long-term strategy. ST PHOTO: JASON QUAH

(ST PHOTO: JASON QUAH)

For delivery worker Khaliq Saleh, the winding down of delivery platform Deliveroo’s operations in Singapore was frustrating and came out of the blue.

The delivery rider of about seven years, who cycles to deliver food, felt Deliveroo was the “most flexible” platform to complete orders on and its impending exit came “too unexpectedly”.

For one thing, he could reject orders without incurring penalties if the pickup or delivery locations were too far or if the fees were not ideal.

With Deliveroo’s withdrawal from Singapore, the 25-year-old told The Straits Times he will be looking for a full-time job in the engineering or logistics sector.

He feels that because of the expected surge in delivery riders working for the other two major platforms, Grab and foodpanda, he will face difficulties getting orders assigned to him.

On Feb 25, Deliveroo announced it will stop operations in Singapore on March 4.

Describing it as a “difficult situation”, the platform said it concluded that the level of investment needed for its operation here was not aligned with its long-term strategy.

Aside from delivery workers, customers and eateries also expressed disappointment and surprise at Deliveroo’s sudden pullout, especially at short notice.

Experts said Deliveroo’s departure may result in Grab and foodpanda lowering prices to attract customers previously loyal to Deliveroo, but eventually raising them due to reduced competition.