MilkRun promised to flip the grocery and alcohol game on its head, offering super quick delivery of all the things you couldn’t be bothered to go get yourself.
The startup launched in September 2021, when many of us on Australia’s east coast were stuck inside as a result of lockdowns, and many turning to delivery services to stay safe during the pandemic.
The pitch from MilkRun was that it was sort of like grocery shopping but it had thousands of items in its stock and it was all fresh produce that was sourced directly from Australian farmers. The delivery was done via electric bike, within minutes, provided you lived within its Sydney and Melbourne catchment areas.
Unlike Uber and other delivery services, MilkRun made a big deal about not being part of the ‘gig economy’, saying it offered riders full-time employment with “all the benefits”, such holiday pay and super.
Unfortunately, however, as of Friday, MilkRun will be no longer. The Australian Financial Review is reporting today that MilkRun will close its doors and make all staff and riders redundant. MilkRun employs more than 400 people across Sydney and Melbourne including office staff and riders, all of whom will be left without a job by the end of the week.
The company raised more than $75 million after its launch but that clearly wasn’t enough to avoid closure. It is reported that founder Dany Milham (who also co-founded mattress and furniture company Koala) sent a memo to staff that flagged the closure of the startup as being a result of worsening economic conditions. News of the closure followed MilkRun in February already shuffling its organisation.
“I’m writing to let you know that we have made the difficult decision to wind down the business, and as a result, MilkRun will cease trading this Friday,” Milham is quoted by the AFR as saying in the email to staff.
“Since we announced our structural changes in February, economic and capital market conditions have continued to deteriorate, and while the business has continued to perform well, we feel strongly that this is the right decision in the current environment.”