Another food delivery service shuts down in Toronto
Are Toronto's food delivery services in trouble? The picture doesn't look entirely rosy heading into 2017 with Uber Eats drivers protesting changes in wage structure and other services leaving the city altogether.
Favour, a company based in Austin, Texas, announced it'd be shutting down in Toronto today. As its first foray north of the border, it launched here in August 2015.
"Favour is withdrawing our operation in Toronto effective today, Monday, December 5th," says Uri Bogler, Favour's VP of Marketing, in an email statement.
"As a dense tier 1 city, Toronto does not fit the profile of our smart-scaling growth plan in tier 2 markets. We will continue to evaluate expansion opportunities in tier 2 markets across the United States and Canada," he continues.
If that sounds a little confusing, here's how Favour differentiates between tier 1 and 2 markets: "For us, density is the main differentiator between a tier 1 and tier 2 city (not overall population). Density drastically affects things like parking, traffic and restaurant wait-times, which impacts our ability to provide service," says Bogler.
As for other food delivery services in the city, Uber Eats came under fire last week after changing its payment model for courriers. It also cut its Instant Delivery service here.
Feast stopped delivering fresh meals in September and is instead focusing on its wholesale business at the moment. Next year, it'll start using high-tech vending machines to get its food to customers.
Update: After Favour announced it was shutting down, some former runners came forward to blogTO alleged they were owed wages and claim the deposits they put down on their delivery bags are not being refunded.
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