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MilkRun closes up shop

Reading Time: 2 mins
By Published On: April 11, 20230 Comments

MilkRun, an Australian grocery delivery company has abruptly collapsed and will be closing its operations this week.

Launched in September 2021, MilkRun has had a successful run as a grocery delivery company, surviving its competitors collapses following halted post-lockdown demand. Founded by Dany Milham, co-founder of Koala, MilkRun pioneered quick grocery delivery service in Australia, inspiring supermarket chains to implement their own quick service, on-demand delivery models.

Mr Milham announced the shut down to staff Tuesday morning in an email. “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,” he said.

“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.”

The company saw quick success as one of the fastest growing start ups in the country, winning a $75 million funding round from Tiger Global Management in January of 2022 just eight months into operation, at which time the company was experiencing double digit weekly growth.

MilkRun stood out among the competition, not only as an early adopter of the model but it uniquely employed its riders as staff on a casual, part-time, or full-time basis, all of whom will be made redundant this week. It is reported that up to 400 staff are affected by the shut down, including both riders and back end employees.

In February, the company announced it would be letting go of 20 percent of its workforce and consolidating its neighbourhood delivery hubs due to increasing economic pressures.

“I’m so proud of the amazing business we have built and of the growth we have achieved,” Mr Milham wrote.

“We set out to change the face of grocery delivery in Australia, while staying true to our values, people and culture, and we did that thanks to the passion, dedication, and hard work of so many of you, and you should be really proud of what we have achieved together.”

Mr Milham confirmed all MilkRun staff and suppliers would be properly compensated before the business halts trading,  “we’ve always been committed to doing things the right way, and winding down the business while we still have a sufficient cash balance enables us to ensure our people and suppliers are paid in full.”

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About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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