Deliveroo Australia CEO Ed McManus explains why management withdrew the pin

Former employees will have higher priority in the administrative process than drivers, who are contractors and considered “unsecured creditors.”

Deliveroo Australia staff received an initial compensation payment just before operations closed, while all passengers who made a delivery in the last three months received two weeks’ pay.

As part of the voluntary administration process, Deliveroo will submit a Deed of Undertaking Agreement (DOCA), a proposal that sets out how the affairs and assets of the business will be dealt with. KordaMentha will evaluate the DOCA and provide a report containing a recommendation on whether to accept the DOCA before the second creditors’ report in December.

In a document for creditors seen by this headline, Deliveroo revealed more details about how it intended to compensate employees, passengers and restaurant partners.

Former employees are entitled to receive a second severance package that includes severance pay, even if they were employed for less than a year at Deliveroo, as well as a pro-rated bonus from the company.

Charging

Under DOCA, passengers are eligible to receive a second payment equal to two weeks’ payment, while restaurant partners who partnered exclusively with Deliveroo also receive compensation.

However, passengers and associated restaurants will not receive this second tranche of payments if more than 50 percent of creditors vote to reject Deliveroo’s proposal at the second meeting in December.

“If DOCA is not approved, passengers [and restaurant partners] you will not receive this payment,” states Deliveroo’s letter to creditors signed by Deliveroo’s chief personnel officer, Caleb Merkl.

In the meantime, customers with unused credit or an unredeemed gift card will also receive a full refund, pending DOCA approval.

McManus urged creditors to approve the proposal.

“If DOCA passes, this will mean that employees, who will soon receive their first pay, will receive their second pay more quickly at the end of December. For passengers, this will mean they will receive the second half of the four-week compensation package being offered to them,” McManus said.

Deliveroo has exited Australia, leaving Uber, DoorDash and Menulog behind.Credit:steven siewert

“For our eligible restaurant and grocery store partners, and eligible customers, this will mean you will receive the compensation you are owed.”

Deliveroo’s collapse comes after a cohort of express grocery delivery startups failed, including Send, Voly and Quicko. DoorDash recently announced its own grocery delivery service, DashMart, in Sydney, Melbourne, and Brisbane.

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