MilkRun collapses as grocery delivery app makes all staff and riders redundant

Delivery start-up MilkRun has announced that it will close its doors and lay off all employees and riders.

The company’s founder, Dany Milham, sent an email to his 400 employees informing them that the delivery service would close shop for good by the end of the week.

“I am writing to let you know that we have made the difficult decision to wind down the business, and as a result, MilkRun will cease trading this Friday,” he wrote.

“Since we announced our structural changes in February, economic and capital market conditions have continued to deteriorate, and while the company continued to perform well, we strongly feel that this is the right decision in the current environment.”

Mr Milham assured staff that they would receive severance pay.

“We have always strived to do things the right way, and by winding down the business while still having sufficient cash balances, we can ensure that our people and suppliers are paid in full.”

The announcement comes weeks after the company cut 20 percent of its workforce.

Mr Milham had blamed the difficult macroeconomic conditions for the decision at the time.

“With economic and market conditions changing rapidly, we need to lead the way and adapt our way of working to the current environment and extend our catwalk,” he said in February.

“This means some structural changes and some tough decisions that will unfortunately affect some of our people.”

Launched in 2021, MilkRun became one of the first companies to offer ultra-fast home delivery.

The organization promised to deliver groceries, alcohol and other necessities to the door within 20 minutes.

The company was founded by Mr. Milham, who is also a co-founder of mattress company Koala.

More to come

Company founder Dany Milham sent an email to his 400 employees informing them that the delivery service would close shop for good by the end of the week