How MilkRun went from Sydney startup darling to sudden shutdown

For a while, MilkRun looked like the future. The Sydney-founded grocery delivery startup promised speed, convenience and a new way to shop — order through an app and have groceries delivered quickly by riders from local warehouse hubs.

It was slick, well-funded and very pandemic-era Sydney. Then, in April 2023, the dream ended.

Founder Dany Milham told staff the company would wind down, with MilkRun set to stop trading within days. More than 400 people were made redundant, bringing a sudden close to one of Australia's most watched startup stories.

MilkRun had raised tens of millions of dollars and became one of the most recognisable names in the rapid grocery delivery space. But the conditions that helped create it did not last.

During lockdowns, convenience delivery boomed. People were home, online and willing to pay for speed. But once daily life reopened, the economics became harder. Inflation, rising costs and a tougher funding environment made investors less willing to pour money into businesses that were still chasing profitability.

The collapse was not just a MilkRun story. It was part of a wider shift in the startup world, where growth-at-all-costs suddenly became much harder to justify.

For Sydney, the shutdown felt like the end of a small but intense chapter. Its fall showed that even the most hyped startups still have to answer the oldest business question: can the model actually make money?