Hundreds to lose jobs after shock collapse of popular delivery service MilkRun

The delivery company will cease operations in a matter of days after a disastrous economic downturn, forcing hundreds of people without jobs.

Once-celebrated delivery company MilkRun will be permanently ceasing operations within a matter of days after a disastrous downfall.

Founder Dany Milham sent an email to the company’s 400 employees informing them the delivery company would be shutting up shop for good by the end of the week.

“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 wrote.

Fast delivery grocery app MilkRun will close its doors for good after two years of operations.

Mr Milham blamed worsening economic conditions for the collapse of the once-great delivery company which raised $11m before launching in September 2021.

MilkRun became one of the fastest growing startups in the country in 2022 when it banked an impressive $75m funding round led by a US venture capital firm.

However, an impressive list of investors including Atlassian founders Mike Cannon-Brookes and Scott Farquhar couldn’t offset the difficult economic environment.

MilkRun founder and CEO Dany Milham announced the company’s imminent closure in an email to staff.

The decision to close MilkRun comes months after 20 per cent of the workforce was let go in an attempt to revitalise the sluggish business.

“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,” Mr Milham told staff.

The CEO reassured his 400 employees that there would be enough money to provide severance packages and pay suppliers.

“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,” he wrote.

Milkrun has gone bust with all staff made redundant. It’ll close doors on Fri. 😭

I loved moonlighting as a #Milkrun courier. They were exceptional b/c they paid per hour, not per delivery. It disincentivised us from breaking road rules.

And it got me away from my laptop! pic.twitter.com/YhGrNBKGZG

— Gary Nunn 🏳️‍🌈🚴🏼🇬🇧🇦🇺 (@GaryNunn1) April 11, 2023

MilkRun was hailed as a revolutionary service when it launched in September 2021 as one of the first companies to offer ultrafast delivery.

It promised to deliver groceries within ten minutes and managed to deliver on its pledge, earning praise for its swift delivery and convenience.

However, the company was forced to broaden its timeframe in 2022 amid rising costs.

RIP to MILKRUN, the last bastion of 'instant' grocery delivery apps that were all the rage in early-2022.

Just 15 months ago it raised $75 million in funding.

Now it will be closed by end of week.

More from @DavidAdams_AU ⬇️https://t.co/djVojipC6z

— Tegan Jones (@Tegan_Writes) April 11, 2023

While MilkRun pioneered the instant delivery trend that burned bright over the past two years, it was not immune to post-pandemic economic woes.

It’s the latest delivery company to fall victim to the looming economic crisis, after local competitors Send and Voly were forced to close up shop last year.

Even larger delivery services were not immune, as demonstrated by the shock collapse of national food delivery company Deliveroo in November.

Originally published as Hundreds to lose jobs after shock collapse of popular delivery service MilkRun