Ridesharing platform Facedrive has signed a binding term sheet to purchase certain assets of Foodora Canada.

The move comes days after Foodora Canada shut down its operations in the country after failing to reach desired levels of profitability. The company announced its decision to cease operations in Canada last month and then began bankruptcy proceedings.

With the acquisition, Facedrive seeks to boost its recently launched food delivery business.

During the Covid-19 outbreak, Facedrive Foods was rolled out to connect restaurant businesses with customers in the Greater Toronto Area and London, Ontario.

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The transaction will help the food delivery platform to expand across Canada.

According to the conditions of the binding term sheet, Facedrive will receive access to Foodora Canada’s 5,500 restaurant partners. The company will also be able to access Foodora Canada’s customers if they consent to share details.

The transaction completion is subject to several conditions, including signing mutually satisfactory definitive purchase agreement and court approval.

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The process is expected to close within 45 days. Facedrive noted that there is no guarantee that the transaction will complete on the terms set forth in the term sheet or at all.

Facedrive chairman and CEO Sayan Navaratnam said: “The term sheet with Foodora Canada comes at the perfect time for Facedrive. The launch of Facedrive Foods is rooted in Facedrive’s vision of becoming the one-stop-shop platform for eco-conscious and socially responsible users.

“A full ecosystem with rideshare, delivery, entertainment, gamification and social components – all in a single platform – is the epitome of convenience with the huge added bonus of being green.

“This provides an incredible growth opportunity to broaden our geographic, user and technological base globally.”