In a shocking blow to the Australian workforce, up to 10,000 jobs are set to disappear as Menulog, a leading fast-food delivery service, pulls out of the market. This unexpected closure has sent ripples through the gig economy and service industries, leaving thousands of workers uncertain about their futures.
The Startling Announcement: Up to 10,000 Jobs on the Line
In an unexpected move, Menulog announced it would cease its operations in Australia by the end of November, leaving up to 10,000 workers without jobs. For nearly two decades, Menulog was one of the top players in the food delivery sector, alongside competitors like Uber Eats and DoorDash. The news comes as a major shock to the thousands of Australians who depend on the platform to earn a living.
Menulog’s closure will directly affect around 120 full-time employees, but the real scale of the job losses extends far beyond that. The Transport Workers’ Union (TWU) has warned that up to 10,000 workers will be impacted. This figure includes not only Menulog’s full-time staff but also the many independent contractors who rely on the app for income. “At any one time, there are around 5,000 workers actively using the platform, so this is going to have a huge ripple effect,” said TWU national secretary Michael Kaine to Yahoo Finance.
These workers will now be forced to find alternative sources of income, and for many, this sudden job loss could be financially devastating. The loss of such a large number of jobs is bound to have a significant impact on the Australian gig economy, which has seen massive growth in recent years but is now facing serious instability.
Why Is Menulog Closing?
Menulog’s parent company, Just Eat Takeaway, explained that the closure is part of a “strategic decision” to focus on markets with higher growth potential. Just Eat plans to direct its resources towards other international markets, where it sees more opportunities for investment and expansion. Menulog’s exit from Australia marks the end of a nearly 20-year presence in the Australian market.
While Menulog’s exit is framed as a business decision, the timing is curious, given the company’s solid revenue generation. In 2024, Menulog generated $244 million in revenue, and it was the second-largest player in Australia’s food delivery market, holding nearly 24% of the market share. So, what went wrong? According to experts, Menulog’s shift in business model played a role.
Unlike its competitors, Menulog attempted to position itself as a “better” platform for workers, adopting an employment model rather than sticking to the independent contractor approach. While this might have been a noble effort to provide stability for its couriers, it didn’t ultimately protect the company from the stiff competition in Australia’s crowded delivery market.
The Gig Economy’s Future in Jeopardy
The closure of Menulog brings into sharp focus the fragile nature of gig economy jobs. While services like Uber Eats and DoorDash continue to thrive, the loss of a major player like Menulog signals how quickly things can change. For the thousands of workers who relied on Menulog for income, this sudden shift highlights the vulnerabilities inherent in gig work.
While Menulog’s closure is a blow to the gig economy, it also serves as a warning to other platforms. The increasing competition and pressure to adopt more sustainable models of employment could lead to further disruptions in the market. Menulog’s downfall isn’t just a story of one company’s closure—it’s a sign of the larger challenges facing gig economy workers in Australia and beyond.
