But Milkrun’s failure,along with those of four competing businesses,suggests its model does not work against Australia’s supermarket giants,which have extensive supply chains and partnerships with gig economy delivery firms that need not pay minimum wages.
The demise of the totemic company puts a full stop on an era when low-interest rates and pandemic lockdowns spurred investors to put huge amounts of money – $86 million in Milkrun’s case – into risky ventures.
Milkrun chief executive Dany Milham,who had once forecast his company would be one of the country’s biggest and get into markets including pharmacies and payments,announced the closure on Tuesday. He blamed the economy and capital markets for his decision to close the business,while asserting it has sufficient cash to pay staff redundancy entitlements and suppliers.
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“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.
“I understand this is difficult news to receive,and I’m sorry to have to deliver it,” Milham said in a note to staff. “I’m so proud of the amazing business we have built and of the growth we have achieved.”
The family offices of Atlassian founders Mike Cannon-Brookes and Scott Farquhar had invested in Milkrun,alongside the giant American fund Tiger Global Management and Australian technology investors AirTree Ventures.