Australian grocery delivery startup MilkRun, which closed its doors in April, has been bought by Woolworths.
The deal, which is reportedly worth $10 million (though Milkrun has not confirmed this), will see Woolworths rebrand its Metro60 to Milkrun.
Woolworths’ Metro60 app, which promised customers groceries in under 60 minutes, has been rebranded to Milkrun, which says it’s powered by Metro.
There will be a flat $5 delivery fee and zero service fee. Woolworths Everyday Rewards members will also be able to earn Everyday Rewards points on their purchase.
Milkrun confirmed the rebrand on its Instagram page, saying: “MILKRUN is back in the game, now powered by Woolworths Metro. That means you get a 10,000+ range of groceries, tons of deals and an average delivery time of 33 minutes thanks to our delivery partners… Feels good to be back.”
And founder Danny Milham told Forbes Australia, “MILKRUN pioneered rapid grocery delivery in Australia, and I’m pleased to see the brand continue in Woolworths hands”.
CEO of Woolworths, Brad Banducci, told Forbes Australia that the supermarket giant had long admired Milkrun’s brand and ambition to shake-up the grocery delivery model. Banducci confirmed orders would be fulfilled from Woolworths’ network of Metro stores, which will give customers choice of over 10,000 product lines.
“We are thrilled that the MILKRUN story will continue to live on and thrive with Metro60 relaunching as MILKRUN now powered by Metro,” Banducci said.
Orders will be fulfilled via Metro60’s current model, which uses third-party couriers who deliver in 33 minutes on average.
The move comes little more than a month after Milkrun collapsed, closing its doors Friday 14th April, citing tough economic conditions. It made all of its 400 staff redundant.
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