New ride-sharing service plans to buy Foodora assets

Facedrive, a "socially responsible" ride-sharing startup, plans to acquire the insolvent delivery service's restaurants and customer base


Facedrive, a new entry into the Canadian rideshare scene, has announced its intent to buy assets from recently-defunct Foodora, including its customer base and 5,500 restaurant partners.

The move by the Scarborough-based company marks a new entry into the hotly-contested Toronto food delivery market, which has increasingly been at loggerheads with restaurants over delivery fees during the pandemic.

Foodora Canada, a subsidiary of German company Delivery Hero, initiated bankruptcy proceedings last month and exited the Canadian market on May 11, saying it was “unable to reach a level of profitability in Canada that’s sustainable enough to continue operations.” The move came two months after Foodora’s couriers won the legal ability to unionize in a landmark court decision.

Facedrive plans to use Foodora’s resources to fuel its new delivery arm, Facedrive Foods, in the GTA and London, Ontario. The company’s platforms also include a rideshare service, plus an online store and a COVID-19-related rideshare division called Facedrive Health.

The company bills itself as “the first Canadian peer-to-peer, eco-friendly and socially responsible ridesharing network and a ‘people-and-planet first’ business,” adding that a portion of each delivery fee goes toward local tree-planting initiatives.

“Facedrive Foods has also committed to comprising the menu options available for delivery through its app of select healthy, nutritious and sustainably sourced choices offered by like-minded restaurant businesses, with consumers’ wellness in mind.”

If all conditions are met, the sale will be complete in 45 days.

@nataliamanzocco

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