VOLY founders confirm closure of instant online grocery delivery service

A well-known instant grocery delivery service has collapsed, just days after abruptly shutting down its social media accounts with customers locked out of its app.

A well-known Aussie instant grocery delivery service has collapsed, just days after customers were abruptly disconnected from the app.

Despite raising $18 million in funding, with staff told the business had enough funds to remain operational until February 2023, online start-up VOLY has become the latest food delivery business to fold.

In an email titled ‘An important message from VOLY,’ the start-up’s founders Mark Heath and Thibault Henry confirmed the business will cease their Australian operations on Thursday afternoon.

“It’s with a heavy heart that we announce VOLY is officially closing in Australia,” they wrote.

“While we were able to build an amazing customer base (thank you!!!) and lay the groundwork for a sustainable business in Australia, we have had to make the tough decision to exit the market during this period of global economic uncertainty.”

The email was sent to customers on Thursday afternoon. Picture: Supplied.

Mr Heath and Mr Henry also thanked their customer and employees. It’s understood half of VOLY’s office staff were let go in June, when the business closed their Crows Nest, Manly, Maroubra and Alexandria warehouses. More staff were also laid off last week.

“We took on a massive challenge – delivering groceries and more without falling back on gig work and instead working with a team of fully employed legends to make magic happen,” they wrote.

VOLY's co-founders, Mark Heath and Thibault Henry. Picture: Supplied

Social media accounts suddenly shuttered

On Monday, Voly’s social media accounts were abruptly shut down with no explanation. This included their Facebook, Instagram and Twitter presence. The most recent blog activity was also dated until January, however its social media accounts have not been active in recent months.

Attempts to use the app were also met with a “closed until further notice” message.

Customers have been cut off from the app since Monday. Picture: Supplied

As the business reduced its operations, VOLY’s delivery times also appeared to length. While the brand sold itself on the promise of groceries delivered in 15 minutes or less, delivery times were extended to 20 minutes and plans to expand into Melbourne were paused indefinitely.

It was understood the sector was struggling to compete with supermarket giants Woolworths and Coles.

The company initially promised customers delivery in 15 minutes or less. Picture: Supplied

Deliveroo announced shock closure

The closure of VOLY comes as Deliveroo announced they would be leaving the Australian market due to poor profitability.

The shock news came on Tuesday after the company determined it could not reach sustainable profits in Australia without major financial investment. The expected return was also not in line with Deliveroo’s risk/reward thresholds.

Deliveroo has gone into voluntary administration after it was launched in 2015. Picture: NCA NewsWire/ David Swift

As as a result of the sudden closure, customers can no longer place orders on the app, with Deliveroo’s food delivery riders also now out of work.

Michael Korda, Andrew Knight and Craig Shepard of KordaMentha were appointed as the company’s voluntary administrators.

“Administrators had no alternative but to cease operations immediately in the absence of financial support,” said Mr Korda in a statement on Wednesday.