Milkrun, an online grocery delivery start-up, has decided to shut down by the end of the week due to the worsening macroeconomic conditions. CEO Dany Milham informed the staff about the closure in a letter, following the axing of 20% of the workforce in February.
The company struggled to raise capital in the past year, and the pressure to improve its financial situation increased. All HQ, hub, and rider roles will be made redundant, with the staff receiving their full statutory entitlements, extra payments, and ongoing support.
Milkrun became one of Australia’s fastest-growing start-ups in 2021 after a $75m Series A round, led by US fund Tiger Global Management. Milkrun, which had an estimated 400 employees after the February layoffs, had to abandon its promise of 10-minute deliveries amid mounting costs, and it is the last remaining grocery delivery start-up in the country.
The closure follows the cutbacks and layoffs in many start-ups across the country as rising interest rates and deteriorating economic conditions put unprofitable companies under heavy pressure.