A biker wearing a Deliveroo backpack drives in the central Barcelona, Spain, July 23, 2019. REUTERS/Albert Gea/File photo

July 30 (Reuters) - Deliveroo (ROO.L) is considering ending services in Spain due to high costs associated with running operations in the country to focus on other markets and expand in new and existing cities, the food delivery firm said on Friday.

"The company has determined that achieving and sustaining a top-tier market position in Spain would require a disproportionate level of investment with highly uncertain long-term potential returns," Deliveroo said in a statement.

Spain's government in May gave food delivery companies three months to convert their couriers into staff workers, one of the first laws in Europe regarding gig-economy workers' rights. read more

The proposal is subject to consultation with employees and riders who will be affected by the end of operations, Deliveroo said, adding that Spain accounted for less than 2% its overall transaction values in the first half of 2021.

The London-listed company ranks fourth in a list of food-delivery firms with the biggest market share in Spain, below Uber Eats, Just Eat and Glovo, according to a report by financial advising firm Fintonic in August last year.

Our Standards: The Thomson Reuters Trust Principles.

Sign up to our tech newsletter to get the latest news and trends in the global technology industry.

Subscribe to our newsletter to get all the news you need to start your day.

Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.

Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.

The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.

The industry leader for online information for tax, accounting and finance professionals.

Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.

Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.

Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.

All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.