Delivery company MilkRun are shutting up shop days after a dramatic economic downturn, leaving 400 employees out of work.
The company are set to discontinue operations permanently, after founder Dany Milham sent an email to their 400 workers saying things will be over 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 said.
Milham has blamed worsening economic conditions. Previously lauded, the company raised $11 million before their launch in September 2021.
To back that up, MilkRun was one of Australia’s fastest growing startups in 2022, banking $75 million after a funding round which was led by a US venture capital firm.
Investors included Atlassian founders Scott Farquhar and Mike Cannon-Brookes. But the economic environment proved tooo tough.
This all comes after 20 per cent of their workers were let go in an effort to keep the slowing business afloat.
“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.
Thankfully, he also says there’s still enough in the kitty to provide severance packages and pay suppliers.
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 says
When it started up, MilkRun earned praise for being able to provide fast delivery and convenience, with groceries to your door within 10 minutes. But they had to widen that timing in 2022, with rising costs.
Local competitors Send and Voly also folded last year., as well as Deliveroo shutting down in November.
