Foodora quit Australia in August owing riders and the taxman more than $8 million.

Its parent company, global food delivery giant Delivery Hero, later wrote a cheque for $3 million - which will be distributed on Friday to those riders who have contacted the company's administrators.

"The move is a world first in terms of payout to exploited gig economy delivery riders," the Transport Workers Union said in a statement.

"But a big shortfall is expected between what Foodora owes and what it has agreed to pay."

The TWU says Delivery Hero owes riders unpaid superannuation and also undercut the Australian Tax Office and Revenue NSW.

In November 2018, a food delivery rider sacked after publicly criticising the conditions he and other workers endured won a landmark unfair dismissal case against Foodora.

The Fair Work Commission decision found Josh Klooger was an employee of the company, not a contractor, as Foodora had argued.

Australian Associated Press