Milkrun closure a “setback” for Australian e-bike startup Zoomo, but the pedals are still turning

The closure of instant delivery pioneer Milkrun poses a “setback” to Zoomo, the electric bike startup which outfitted the business, but senior leadership says Milkrun’s demise won’t compromise the Sydney-based firm.

Milkrun founder Dany Milham on Tuesday announced the business’ imminent closure and the redundancy of approximately 400 staff, saying rapidly changing economic and capital market conditions contributed to the decision.

The closure comes roughly 15 months after Milkrun entered the Australian market, promising 10-minute grocery deliveries across inner Sydney, and the backing of $75 million in venture capital.

Delivery staff at Milkrun’s neighbourhood hubs used bikes provided by Zoomo, the Australian firm which provides electric bikes (e-bikes), scooters, and light vehicles to riders and businesses in the delivery sector.

After four stages and over 600 riders taking part, the Tour de MILK ended last week with an epic finale ride.