People sit at the high top bar inside Yakimono, with blue and green neon lights and circular light fittings
Photograph: Supplied/Lucas Restaurants
Photograph: Supplied/Lucas Restaurants

Is the fall of Deliveroo the beginning of the end for delivery services?

The sudden announcement that Deliveroo is ceasing operations is causing waves across the hospitality industry

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Earlier this week, Deliveroo made the shock announcement that it was ceasing operations in Australia, effective immediately. Citing "challenging economic conditions", Deliveroo stated that "achieving a sustainable position of leadership in the market is not possible without a disproportionate level of investment which would have highly uncertain returns." 

While the announcement sent shock waves across the city, with many customers left disappointed and employees left in the lurch, something Melburnian's didn't suspect was that this sudden closure could signal the beginning of the end for delivery services as we know them. One of Melbourne's hospitality giants, Chris Lucas, has announced that Lucas restaurants have "ceased all relationships with third-party delivery apps and are bringing [its] much-loved takeaway offerings at Baby Pizza and Hawker Hall in-house. This means we can give our crew more shifts and more hours, and we can better control the experience you have at home when you order with us. For those wanting to get their Baby or Hawker Hall fix, you can give us a call or jump on our website." 

And it's not just Mr Lucas standing up for the hospo industry; Mr Miyagi, the Windsor favourite, has posted an announcement on Instagram overnight, calling out "'blue jacket wearing cyclist' workers" to work for the restaurant group. Mr Miyagi called out the "'blue company'" for leaving 15,000 riders without work: "As the hospitality industry continues to be impacted by a labour shortage, we have a promising offer. A reliable income, consistent hours, and food you don't just carry around in a giant backpack, but can eat! Hang up your helmet and don the apron!"

In a not-so-subtle protest against the shutdown, Mr Miyagi has invited those now looking for work to include "#DELIVERUDE" in the email subject line. 

Will these bold moves encourage other restaurants to go back to in-house delivery? Or will the gap in the market left by Deliveroo just make more space for other delivery giants to continue profiting? Only time will tell... 

Forget about takeout and head out this weekend to check out the best restaurants in Melbourne

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