Food delivery service Menulog has announced it will stop operating in Australia, blaming the decision on “challenging circumstances”.

The platform – which has used stars such as Katy Perry and Snoop Dogg in its ad campaigns – will no longer accept orders from midnight on Wednesday, November 26.

“While Menulog has a proud 20-year history, it has been navigating challenging circumstances,” Amsterdam-based owner Just Eat Takeaway.com said in a statement posted online on Wednesday.

“This strategic decision reflects our focus on accelerating growth and investments in other markets and to deliver the best experience for customers, partners and couriers.”

Around 120 employees will be affected by the closure, with Menulog saying they will be “fully supported with generous redundancy packages above legal requirements and outplacement support”.

Transport Workers’ Union national secretary Michael Kaine said the closure would be a shock to the “thousands of food delivery riders” who relied on Menulog for income

“We will be working to ensure those workers receive pay for their work and fair exit payments over the coming weeks.”

Kaine took a swipe at the gig economy, where he said workers were still “languishing with below-minimum wage rates, no sick leave or superannuation, and deadly pressure to rush to make a living and avoid being deactivated”.

“We urgently need standards in the gig economy to stop the relentless downward spiral,” he said.

“New laws introduced by the Albanese government will significantly level the playing field – but DoorDash, Uber Eats, Hungry Panda and Easi now need to come to the table to ensure we get standards in place as soon as possible.”

DoorDash and Uber Eats are the two other biggest food delivery platforms operating in Australia, after UK-based Deliveroo shut up shop in 2022.

Deliveroo had been one of the first such services in this country when it launched in 2015, and blamed tough economic conditions and competition from rivals for its closure seven years later.

Menulog owner Just Eat Takeaway.com describes itself as “one of the world’s leading global on-demand companies”, with operations in 17 countries including the UK, Spain, Canada, Austria and Poland.

But Menulog has struggled in recent years, reporting annual losses from 2022 to 2024 of $275 million, $110 million and $32 million, respectively, according to the Financial Review.

The company was acquired this year by Dutch investment group Prosus for 4.1 billion euros ($A7.28 billion), with Just Eat Takeaway.com set to delist on November 17.

Menulog managing director Morten Belling said the decision to close the Australian business had been challenging.

“Today is a tough day for the Menulog business and I would like to reassure everyone this decision was not taken lightly,” Belling said.

“Our priority now is to support our customers, couriers and partners.”

Menulog customers have been advised to redeem any unused vouchers or credits before the service ceases operating.

–with AAP