Several industry sources said Milkrun had briefly held talks with Deliveroo and Coles about ways to potentially collaborate, including by getting Milkrun’s products on Deliveroo’s app. But its discussions with Uber were more substantial, the sources said.
In a wide-ranging interview in October, Uber’s global chief executive Dara Khosrowshahi was sceptical about the prospects of firms like Milkrun, which had sprung up on several continents only to flounder.
“I think that the business model can work but it will be very expensive in order to build up a customer base,” Khosrowshahi said. “And right now, markets are penalising expensive business models. So I think that those companies are going to be challenged right now.”
Uber already has a presence in the grocery delivery market via a partnership with Woolworths called Metro60.
But the company has used the Australian market as a breeding ground for global product initiatives. Earlier this year it acquired Australian start-up Car Next Door, which is now forming the backbone of an international expansion into vehicle sharing.
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Milkrun is the best-funded local delivery start-up, and raised $75 million from a host of prominent backers in January. It used the money to build a network of mini-warehouses in Sydney and Melbourne, enter new product areas such as alcohol, and create a confident, irreverent brand in a distinct shade of blue.
Filings with the Australian Securities and Investments Commission indicate Milkrun has not raised any fresh equity since then.
Milkrun chief executive Dany Milham did not respond to requests for comment. In June Milham said the company was in a “comfortable” financial position, growing rapidly, and predicted some of its stores would soon be profitable.
Milkrun’s total headcount, according to figures from the professional social network LinkedIn, which relies on users to update their employment status and is therefore useful as a guide only, is down 6 per cent in the last six months. But Milkrun is still advertising for a handful of open roles.
Uber and Coles declined to comment. Deliveroo no longer has Australian spokespeople.
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