‘Not an Insignificant Ripple’: Menulog’s Closure to Leave Thousands of Australians Without Income

Introduction
The sudden closure of Menulog after nearly two decades in Australia is expected to leave thousands of workers without income, prompting warnings of far-reaching consequences across the gig-economy sector. While the company has confirmed 120 direct job losses, unions say the real number of Australians affected could exceed 10,000.

Details of the Announcement
Menulog’s parent company, Just Eat Takeaway, announced it will shut down operations in Australia at midnight on November 26, citing “challenging circumstances” and a strategic shift to focus on international markets.

According to IBISWorld, Menulog held nearly 24% of Australia’s food-delivery market in 2024 and generated $244 million in revenue. Despite its long-standing footprint, the platform had struggled in an increasingly competitive and regulated landscape dominated by Uber Eats and DoorDash.

TWU national secretary Michael Kaine told NewsWire that Menulog’s suggestion that only 120 employees will be impacted is misleading.
“We think there are in excess of 10,000 workers who have accessed work over time through the Menulog app … so this is going to affect thousands and thousands of workers,” he said.

Industry Context and What Went Wrong
Experts say Menulog’s downfall was driven by competition and its unique employment model.
University of Sydney senior lecturer Dr Alex Veen said Menulog attempted to distinguish itself as a “fairer” platform by transitioning couriers from independent contractors to employee status — a shift its competitors avoided.

“Menulog bet heavily on shifting to an employment model, but the regulatory environment changed faster than anticipated,” he said.

The Albanese Government’s Closing Loopholes Act — which introduced minimum standards for gig-economy workers, new definitions of casual work, wage-theft criminalisation, same-job same-pay laws, and the “right to disconnect” — accelerated operational pressures.
Ironically, the law legitimised competitors’ contractor-based models while making Menulog’s employment-first approach harder to sustain.

Kaine said the reforms were overdue but arrived too late to save Menulog’s model.
“What we really need is a level playing field in this industry … Menulog craved it, but it wasn’t put in place in time.”

Impact on Workers
The closure means 120 direct employees will lose their jobs, with Menulog promising redundancy packages above legal requirements and outplacement support. But the most severe impact will fall on gig workers who depend on the platform.

Menulog has confirmed:

• Eligible couriers will receive a voluntary payment of four weeks’ income.
• Couriers must have completed their first delivery at least six months prior and their most recent within the past eight weeks.
• The total number of eligible riders is still being calculated.

Kaine acknowledged the company’s goodwill:
“This is a company that has shown over time that it has good intentions … I think it wants to leave on the best terms possible.”

Broader Implications
Menulog’s closure is the latest in a wave of food-delivery platforms exiting the Australian market. It signals a sector-wide contraction and raises concerns about worker protections, sustainable pricing models, and the future of gig work.

Kaine warned that without proper regulation, the industry encourages companies to compete by driving down labour costs:
“If there’s no oversight, workers get squeezed to the lowest possible rate — and that can be deadly. Seventeen gig workers have died in recent years because the work is inherently dangerous.”

Conclusion
As Menulog winds down operations, thousands of Australian couriers face reduced income and intensified competition on rival apps. The closure stands as a significant moment for the gig-economy sector — a stark reminder of the fragile foundations supporting Australia’s booming on-demand delivery workforce.