Deliveroo to quit Dutch market on Nov. 30, riders to get compensation

Smarphone with Deliveroo logo is placed on the test tubes labelled with the Coronavirus disease (COVID - 19) name in this illustration taken, March 25, 2020. REUTERS/Dado Ruvic

AMSTERDAM, Oct 19 (Reuters) - Deliveroo (ROO.L), the meals ordering and delivery company, said it would halt operations in the Netherlands as of Nov. 30 with its riders in the country receiving a compensation package.

"After consulting with employees and riders, Deliveroo has established that reaching and keeping a top market position in the Netherlands would require unreasonable investment with an uncertain long term return," the company said in a statement.

It added that it had come to an agreement with Dutch labour union FNV on a compensation package for its more than 9000 riders in the Netherlands.

The package consists of two parts - an amount equal to 38% of an rider's income in the past year and an amount based on their income and employment history, FNV said in a statement.

"It is unique that we have been able to make agreements for the riders now that the platform is leaving the Netherlands," said Anja Dijkman of FNV, which has previously clashed with Deliveroo over workers' rights.

Deliveroo said in August it was considering the move, given the Dutch market only accounted for a small amount of its operations and it had failed to gain sufficient local market share.

Reporting by Toby Sterling, Charlotte Van Campenhout; Editing by Jan Harvey, Kirsten Donovan

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