Deliveroo shuts cloud kitchens in Singapore amid high operating costs

FOOD delivery giant Deliveroo has ceased operations at its remaining two cloud kitchen sites in Singapore, amid higher operating costs and waning demand from restaurants.

A Deliveroo spokesperson told The Business Times that operating costs at its cloud kitchens have “risen significantly”, as rent and utility rates continue to increase over the last few years.

The spokesperson also noted that its restaurant merchants “are slowing some of their expansion plans due to economic pressures”, including food inflation and rising wages.