MilkRun Could Put Australia on the Map Again—Grand Promises that Ended in Disaster for 400 Workers

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Four hundred Australian workers were left without a job after the ambitious milk delivery startup MilkRun failed to keep its grand promises of revolutionizing the industry.

Around a year ago, MilkRun, a rapid grocery delivery company, was gaining popularity in Sydney and Melbourne. Dany Milham, who was associated with the company, discussed his ambitious plans for its future.

“I am very ambitious,” he stated in an interview before being ranked number 40 on the Australian Financial Review Young Rich List.

The entrepreneur claimed that MilkRun would grow into a more significant business than Coles or Woolworths within the next ten years. They plan to expand the service to Brisbane, Adelaide, and Perth and offer delivery for various items ranging from groceries to iPhones.

He said, “We have achieved our targets and goals, pleased our investors, and gained market leadership early. There are numerous opportunities.”

However, after ten months, Milkrun riders will securely park their bikes for the last time.

Yesterday, MilkRun declared that it would shut down its operations, resulting in layoffs for all its employees and riders. The company is following in the footsteps of many other failed delivery startups.

On Tuesday, Mr Milham sent an email to his 400 workers. In the email, he stated that his company had collapsed due to deteriorating market conditions, even though the business had been performing well.

In an email to staff, he wrote that although the business is still doing well, economic and capital market conditions have worsened since announcing structural changes in February. He firmly believes that it’s the right decision given the current environment.

According to Professor Gary Mortimer, an expert in business and retail at the Queensland University of Technology, the collapse of MilkRun was not surprising.

“These hyper-grocery delivery startups were predicted to fail for a while,” he said.

“Amidst the pandemic, their growth was significant as they seized the opportunity for entrepreneurship. With lockdowns in Sydney and Melbourne and people avoiding leaving their homes, their success was a prime example of taking advantage of the situation.”

MilkRun’s grand promises have yet to come to fruition. With the collapse of their business, there are now 400 workers who are left without a job. This could be seen as another setback for Australia’s economy, with rising unemployment.

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