Speedy Delivery App MilkRun Has Announced It’s Shutting Up Shop, Leaving Hundreds Without A Job

MilkRun app leaves hundreds redundant

“Groceries in Mins” app MilkRun has collapsed and closed its doors, making all staff and delivery drivers redundant.

The Australian Financial Review reported that in a email the publication saw on Tuesday, MilkRun founder Dany Milham told all employees that company will cease trading for good by the end of the week.

In the email, Milham acknowledged that the company deteriorated when changes were made to MilkRun’s operations in February. The changes also saw a 20 per cent loss in the MilkRun workforce.

“Since we announced our structural changes in February, economic and capital market conditions have continued to deteriorate, and while the business has continued to perform well, we feel strongly that this is the right decision in the current environment,” the email obtained by the Australian Financial Review reads.

The MilkRun founder also included that employees will be paid severance packages. “We’ve always been committed to doing things the right way, and winding down the business while we still have a sufficient cash balance enables us to ensure our people and suppliers are paid in full,” Milham wrote.

As mentioned earlier, MilkRun had already let go of some staff earlier this year. News.com.au reports that Milham blamed the lay offs on the “economic climate.”

“With economic and market conditions changing rapidly, we need to get ahead of the curve and evolve the way we operate to fit the current environment and extend our runway,” he reportedly wrote in an email to MilkRun staff. “This means making some structural changes and some tough decisions that will unfortunately impact some of our people.”

Last year, MilkRun’s competitors Voly and Send shut down, and the Australian Financial Review reported that there were talks for MilkRun to partner with companies like Uber or Coles, but unfortunately, it never happened.

“We set out to change the face of grocery delivery in Australia, while staying true to our values, people and culture, and we did that thanks to the passion, dedication, and hard work of so many of you, and you should be really proud of what we have achieved together,” Milham wrote in an email obtained by the Australian Financial Review.

MilkRun officially closes on Friday, leaving hundreds without a job.