SkipTheDishes serves up to 350 employees, the latest downturn in the delivery sector

A food delivery employee in Yaletown in Vancouver, on December 3, 2020.Jonathan Heyward/The Canadian Press

Global food delivery conglomerate Just Eat NV JTKWY It is laying off as many as 350 Canadian employees as it has become the latest cost-cutting company in a volatile market for this sector.

The group bought Winnipeg-based SkipTheDishes Group in 2016 when it was one of Canada’s top startups. LinkedIn analysis shows SkipTheDishes employs nearly 3,000 people across Canada, the largest group of whom is in Winnipeg, where most layoffs are believed to have occurred.

Although food delivery has boomed in recent years, particularly during the pandemic, the sector has faced a wave of consolidation in recent years as it has struggled to manage its costs in the face of rapid growth. Like many companies focused on courier, it has also clashed with employees and unions over workers’ rights and costs.

The delivery sector is also grappling with a world that has reopened after more than two years of sudden pandemic shutdowns. And since mid-November, markets have been punishing cash-starved tech companies after years of bumper growth at any cost. Amsterdam-listed shares of Just Eat Takeaway have fallen more than 70 percent since then.

Just Eat Takeaway says it has 94 million active customers in 22 countries, and owns several other food delivery brands including Grubhub, Foodora and Lieferando. In August, the Dutch giant revealed that its loss in the first half of 2022 had grown more than sevenfold, to 3.5 billion euros ($4.6 billion) from 486 million euros the previous year.

Just Eat Takeaway says it has 94 million active customers in 22 countriesJonathan Heyward/The Canadian Press

Jitse Groen, the company’s CEO, tried to calm investors in an August 3 press release by saying that “our path to profitability is accelerating.” He said he hopes the company’s EBITDA will be positive at an adjusted level by sometime next year.

Just Eat Takeaway Confirmed Next layoffs for Canadian workers CTV News Winnipeg technology news site BetaKit I reported it for the first time. “Following a comprehensive review of the global logistics workforce, Just Eat has made changes to the global business gearing organization and its partners for sustainable growth,” a Just Eat spokesperson said via email Monday.

“This includes reducing the size of the logistics team in Canada that supports several global markets across the business.”

SkipTheDishes’ early backers included Shopify CEOs Toby Lutke and Harley Finkelstein, co-founder of Wattpad Corp. Allen Lau, co-founder of Two Small Fish Ventures Eva Lau, and David’s Tea co-founder David Segal. Acquisition in 2016 It was worth just as much 200 million dollars.

In late August, Just Eat Takeaway sold its one-third stake in Brazilian food delivery platform iFood to Dutch multinational Prosus NV for €1.8 billion including performance payments. Announcing the sale, Just Eat Takeaway said it “remains focused on improving its profitability and on disciplined capital allocation.”

After heavy Canadian tech companies like Shopify Inc. and Wealthsimple Inc. and Hootsuite Inc. and CFT Clear Finance Technology Corp. (Clearco) announces layoffs to cut costs this summer, cuts in the sector don’t appear to be slowing. CubicFarm Systems Corp. said. , an inland farm technology startup, said Monday it would cut its workforce by half, laying off 87 people to help save about $15.6 million annually. Langley, British Columbia-based CubicFarm also saw an executive change just weeks ago.