Milkrun

Australian grocery delivery startup MilkRun is shutting down entirely, making all 400 employees and riders redundant as of April 14, 2023. This full closure follows a previous layoff of 20% of its staff in February, which was part of a consolidation effort. The company, which launched in 2021 and raised significant funding, cited deteriorating economic and capital market conditions as the primary reason. Despite building a strong brand and customer experience, the instant delivery startup could not achieve profitability at the required scale in the challenging post-pandemic investment climate, mirroring the fate of other local competitors in the industry.

Australian rapid grocery delivery startup Milkrun laid off approximately 20% of its workforce, affecting around 40 employees based on an estimated total of 200 staff. The cuts, announced internally by CEO Dany Milham on Wednesday, are part of a restructuring to extend the company's cash reserves amid challenging economic conditions. Milkrun is also consolidating several of its delivery hubs, though it will continue serving all current markets. The move follows a period of significant losses, with reports indicating the company was losing money on orders last year, and comes as rising interest rates make investors more cautious about cash-burning startups. The company stated these changes would secure its financial runway for over 12 months, with average order values reportedly doubling to more than $50.