Melbourne fresh produce delivery service YourGrocer will cease operations on Friday, exiting the hard-hit market just days before the Christmas rush.
The Nine papers report YourGrocer founder and chief executive Morgan Ranieri informed customers of the decision in a Wednesday email, declaring the company had no choice but to shut up shop.
Ranieri and the YourGrocer team “cannot keep the company going any longer so have been forced to cease operating”, he told customers.
Friday will be the last day of YourGrocer deliveries, with all future orders cancelled, including orders booked for the rapidly approaching festive period.
Ranieri apologised to customers for the “inconvenience and disappointment”, the email said.
SmartCompany has contacted YourGrocer for comment.
Founded in 2013 in Melbourne’s Brunswick East, YourGrocer partnered directly with independent market retailers to offer their fresh produce online.
Shoppers paid a weekly $3 fee, granting them free delivery on orders over $60.
The company recently claimed to have completed $45 million in sales over its lifespan.
The apparent collapse comes during a torrid time for delivery services in Australia, which have struggled to sustain their lockdown-era growth.
Instant delivery startups Quicko, Voly, and SEND all exited the market this year, and Deliveroo, once a major player in the fast food delivery game, also left Australian shores last month.
In an online notice to customers ahead of the Christmas rush, a YourGrocer representative said the company had been “negatively affected by the tough global economic conditions” and was forced to cancel weekend and same-day deliveries.
“While we remain deeply committed to partnering with independent businesses to bring you the best local food, these changes are unavoidable for the time being,” the representative said.
More to come.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
