,[Co-founders] Mark and Thibault were really open with us before Friday,” the employee said. He added: ‘The changing startup landscape is making it difficult to raise funds, we’re having a meeting with investors on Tuesday, we’ll let you know how it goes. And then on Wednesday we were all let go.”
The staff member said they knew startups could turn south quickly, but were “disappointed” because the two Volley founders previously said the company had enough cash to last until next February. The source said the pair were good people, “super inspirational” and had assembled a talented and collegiate team, but they needed advice.
Store managers were not given as much notice, the staff member said, with scathing comments leaving on an online review site.
Of the three companies that launched last year in hopes of conquering Australia’s grocery market, Send has collapsed and Volley has taken deep cuts. MilkRun founder Danny Milham declined to comment. Credits: Overall: Monique Westerman
The company’s Crow’s Nest, Manly, Maroubra and Alexandria warehouses have closed, the former staff member said, leaving only three or four stores in the city and surrounding suburbs to postpone a planned expansion to Melbourne. The delivery time has been extended to 20 minutes, but the volley is still working.
Its bigger and better-funded rival MilkRun is led by serial entrepreneur Danny Milham, who did not return a request for comment. in one Australian Financial Review The article published last month dubbed Milkeran an “overnight success,” with Milham insisting that his company would be bigger than Coles in a decade, adding that it had better margins than people because of its efficient staffing and product range.
Elsewhere, Milham has dismissed comparisons to other firms in the sector, and there are some in the industry who think MilkRun could benefit from standing out from its competition. Send, the third startup that entered the market last year, collapsed in early May. It had tried to sell itself to MilkRun and Volley before failing, sources said.
MilkRun founder Danny Milham believed that his new company would grow much faster than his previous startup, mattress and home goods company Koala. credit: Josh Robbenstone
It’s not uncommon for startups to collapse, which the sector sees as a worthwhile price for ambitious people to try to create value for investors, new jobs and new customer experiences. Many venture capitalists have pointed out before Sydney Morning Herald And age They still have money to invest in good companies.
But industry insiders have long doubted that any local player will become profitable long-term in the instant grocery delivery sector, wooing customers with affordable prices and superfast service.
This is because startups faced higher leasing costs from having stores in dense urban areas, guaranteeing employees the full industry minimum wage, as opposed to competing delivery services such as Uber and DoorDash, and the need for that scale. It lacks the economies that supermarket giants like Coles, Woolworths and Aldi enjoy. ,
According to a recent Bloomberg report, a European company called Gorilla, which serves as a template for local startups, is slashing staff and scaling back expansion plans as it mixes sales with rivals. Or talks secretly about a merger. Last year the company raised nearly US$1 billion at a valuation of around US$3 billion, but is now struggling to raise funds as investors begin to doubt the sector’s profitability. US rival Gopf also laid off hundreds of employees earlier this year.
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