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.


Leave your opinion for the editor...We read everything!

Your email address will not be published. Required fields are marked *