Shock as CoLab food delivery service collapses

It’s been revealed another Australian food delivery service collapsed days before the shock closure of MilkRun.

Another Australian food delivery service collapsed days before the shock closure of MilkRun, it has been revealed.

Direct-to-customer retailer website CoLab entered voluntary administration last Thursday after failing to gain a fresh round of funding. failing to gain financing to continue operating.

Co-founder and CEO Josh Abulafia shared the news in a LinkedIn post, writing that the company’s staff had been made redundant.

“It’s been a tough day for CoLab and unfortunately we have had to let the team go,” he posted.

MilkRun delivery service will close on Friday. Picture: Josie Hayden

“As a quick background we (were) in the process of closing out a new round of financing that fell through.

“We then had significant interest for the company to be acquired and decided to put the company into VA to help, but due to unforeseen events our timelines became truncated.”

CoLab was the result of a collaboration between ChefPrep and Co-lab Pantry.

The news comes less than 24 hours after another delivery company MilkRun announced it would be permanently ceasing operations by Friday.

“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,” Founder Dany Milham sent an email to the company’s 400 employees on Tuesday.

Despite banking an impressive $75m funding round led by a US venture capital firm in 2022, Mr Milham blamed worsening economic conditions for the shock collapse.

Originally published as Shock as CoLab food delivery service collapses