In an extraordinary email to customers, the CEO apologized and acknowledged that they had a “bad experience” recently.
The CEO of an Australian company that promised to deliver groceries in less than 10 minutes has sent an astonishing email to customers apologizing if they feel “let down” by the service.
Young Rich Lister, Dany Milhan is the CEO of the Start-up Milkrun called, which raised $11 million alone before its launch last September and another $75 million this year.
The start-up is backed by Atlassian’s tech giant founders, billionaires Mike Cannon-Brookes and Scott Farquhar.
Milham, who is estimated to be worth $150 million, said there were “no apologies” but believed there was an “unacceptable decline” in customers’ experiences with Milkrun, in an email sent to customers Friday. was sent.
“There have been a number of factors that have sometimes led to an unacceptable decline in our delivery experience during peak periods,” he wrote in an email to customers.
“These include pending Covid cases impacting rider and hub staff availability, record rains in Sydney and the challenges associated with scaling a fully employed workforce faster than anyone has ever attempted before.
“I would like to take this opportunity to apologize if you have recently had a late delivery or had a bad experience. No apologies, you deserve better and I want you to know that I’m committed to making sure we deliver on our promise and continue to deliver the best experience you’ve ever had.”
Milkrun currently supplies 50 suburbs in Sydney and 26 suburbs in Melbourne, and stocks up to 2000 groceries, housed in a network of warehouses described as dark stores.
Milham went on to tell clients it wasn’t “all bad” with the start-up changing “how Aussies shop” to create “an astonishing experience” and revealed it had also hired more than 1,000 employees with riders using e-bikes to deliver orders.
To address the company’s issues with deliveries, he said they had opened new hub locations to reduce delivery time and distance, hired more riders and staff, and worked with suppliers.
Milkrun hopes to take over a share of the $122 billion Australian grocery market, but now faces stiff competition from one of the supermarket giants.
Big competition muscles in
Woolworths revealed this week that it had launched a new app that promises door-to-door groceries within an hour for a $5 fee, with the new venture launching in 11 Sydney’s eastern suburbs, including some areas Milkrun already operates. like Bondi.
According to Woolworths, the app, called Metro60, will expand to hundreds of new suburbs in NSW and other states in the future.
It offers 4,000 products, from fresh produce to pet food to baby products, delivered by Uber couriers.
The first three deliveries are free through the app before the $5 delivery charge kicks in with a $20 minimum spend and it has been described by the grocery giant as a way to get last minute snacks, ingredients or meals.
“Metro60 is a game changer for the occasions where customers are tight on time and can’t reach a Woolworths Supermarket or Metro store but need something quickly,” said Von Ingram, Woolworths Chief Transformation Officer.
Other industry start-ups are struggling
It comes at a time when other industry start-ups that sprung up in the past year have struggled.
A company called Send collapsed in May, putting 300 jobs in Sydney and Melbourne at risk. by a whopping $11 million in just eight months.
Send was available in 46 suburbs of Sydney and Melbourne and had 46,000 registered users, but the admin report revealed Send’s revenue last October was $8113, but made a loss of more than $658,000.
Fast forward to March, and Send’s revenue had skyrocketed more than 50-fold to nearly $417,000 a month, but the losses ran to an extraordinary $2.38 million a month.
The biggest expense was staff who contributed up to $5.5 million over the eight months, the administrators said.
At the time, Mr Milham said Milkrun had reviewed Send’s financial information and had a materially different business from his model.
The other start-up is Voly, co-founded by Mark Heath and serving approximately 42 suburbs after raising $18 million in December 2021.
But it laid off half its office staff this month and closed its warehouses in Crows Nest, Manly, Maroubra and Alexandria, with a 20-minute delivery time, and plans to expand into Melbourne are on the shelf, the Sydney Morning Herald reported.
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