No Money Left: Milkrun Running Out of Cash Amidst Failed Grocery Delivery Startups

Must Read

These Aussie startups were the saving grace during times of lockdown but are now slowly watching their businesses collapse and leaving employees vulnerable.

As Australia encountered numerous Covid-19 imposed lockdowns, grocery delivery startups swiftly rose in popularity.

It’s no shock that these corporations soared to success as Australians avoid physical stores like never before.

However, in recent times the delivery darlings have become increasingly rare and are on their way to becoming a distant memory.

In March 2022, the demise of Quicko made headlines – a delivery service that previously promised to bring items within two hours.

In a mere two months, the widely-publicized Send — which promised to deliver groceries within fifteen minutes or less — tragically crumbled, leaving nearly 300 jobs in Melbourne and Sydney on the line.

Recently, The Australian publication reported that Milkrun might be the latest victim of a lack of capital. Citing two failed attempts to raise funds in the past year and mounting pressure on the Sydney-based group, it appears Milkrun is struggling to stay afloat amidst financial strain.

Dany Milham, a Young Rich Lister, founded Milkrun in 2021. Before the launch of his venture, he raised a record-breaking $11 million in funding. Following its success and immense popularity among customers, it attracted an unprecedented $75 million investment within one year!

Milham had ambitious goals to build beyond supermarket products and boasted that their profits could exceed $5 billion annually.

A spokesperson for Milkrun emphatically denied allegations that the company was being sold and maintained that their strategy changes relating to delivery times, cost structure, and growth initiatives had nothing to do with wages. They asserted they were not cutting salaries in any way.

“Milkrun is not running out of cash. We are continuing to progress with our growth strategy and have the necessary capital to support our business,” the spokesperson said.

Despite this, Milkrun is yet to turn a profit and has been incurring losses of up to $13 per order, as reported by The Australian.

Startup failure stories are becoming more common, and Milkrun’s struggles serve as a reminder of the fragility of the Australian economy. As of now, Milkrun is doing its utmost to remain competitive in this dynamic market. Only time will tell if their efforts will be enough to keep them afloat.

- Advertisement -spot_img
- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img