Moo-ving in the Wrong Direction: Milkrun Downsizes

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Milkrun, the grocery delivery platform, has had to lay off 20 per cent of its workforce. However, they are committed to continuing operations in all their current markets.

In a widely circulated internal email, Dany Milham, Founder and CEO of the company, which launched in 2021, communicated to staff members the upcoming changes.

“To stay ahead of the ever-shifting economic and market conditions, we must adjust our operations following this current climate. This will help us extend our runway and keep pace with a constantly changing landscape.”

“To maintain our success, we must make certain structural modifications and difficult decisions affecting some of our employees. Starting today, we are consolidating multiple hubs while still providing service to all markets we serve.”

“It’s a difficult pill to swallow, and I regret having to inform those of you whose roles are being affected by this.”

In 2021, Milham established Milkrun intending to disrupt Australia’s $122 billion grocery industry. Last year, his success in this venture was recognised when he ranked 40th on AFR’s Young Rich List with an estimated net worth of $153 million. 

To further bolster their mission to revolutionise the market, they have raised $86 million from two seed funding rounds—the most recent being a massive influx of capital totalling up to $75 million recorded in January 2022.

Revisions have been made in light of the shutdowns from rivals like Voly, Send, and Deliveroo’s parent company citing an inability to yield a profitable scale in Australia. This comes when the founders and investors are still pushing for further expansion.

Despite this setback, Milkrun continues to make strides in its mission to disrupt the grocery delivery landscape. It will be a tough road ahead for the company, but with vast amounts of capital and targets set to hit over 2023, they’ll be milking it for all they can.

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