Milkrun: New Surry Hills Grocery Delivery Bags $75-Million Investment

Milkrun, the fledging Surry Hills startup that opened in September 2021, has bagged a $75-million investment to expand its 10-minute grocery delivery service in other areas across Sydney and potentially in Melbourne.

Founder and chief executive Danny Milham, who was also the co-founder of Koala, the online mattress store, closed the deal with U.S. investor Tiger Global just six months after securing an $11 million seed round to open the essential business along Bourke Street.

With a total capital investment of $86 million, Milkrun has been operating in more than 35 suburbs in Sydney, up from just 26 in December 2021. It has established over 45 dispatch sites and a series of “dark stores” or warehouses that stock supermarket, meat, and fresh produce to provide more than 2,000 common items on its mobile app.

Since its launch, Milkrun has been flying under the radar compared to other established platforms. However, that could soon change as Milham sees a lot of potential in widening its reach knowing that many customers make as much as four grocery orders within a day. The Milkrun app promises faster grocery deliveries without the inflated delivery cost compared to services like Deliveroo or UberEats.

As it expands its services, the company will also hire more riders on e-bikes adding to its current pool of 500 staff. Milkrun workers are not hired as gig workers but as casual, part-timers, or full-time staff with benefits like superannuation, health insurance, and sick leaves.

Follow Milkrun on its Instagram page to know which suburbs they cater to and see what grocery deals are on offer.

“We just ordered some groceries and they arrived in under 6 minutes! How?! We’ve use Milkrun 3 times now and every time had an amazing experience and it arrived so fast. The future of convenience food shopping!!!”
Katie Cummings

“I have no idea how but every single time I’ve ordered, my items have been delivered in less than 10 mins. Blows my mind every time. Not only that, each of the Milkrun bikers who have delivered my order have been SO lovely and professional – probably because Milkrun is one of the first business’ to offer their delivery partners full time, salaried jobs – it’s so nice to know that I’m ordering from a business that truly cares about their staff and service. Incredible.”
Dominic Coze

“In isolation and running out of groceries. Friend recommended Milk Run and just made an order that was delivered within 10 minutes. Amazing! Thank you!”
Johanna Lindholm