‘Good to be back’: Failed grocery delivery startup Milkrun bought by Woolies

Australian grocery delivery startup MilkRun has been bought by Woolworths.

Australian grocery delivery startup MilkRun, which ceased operations in April, has been acquired by retail giant Woolworths in a deal reportedly worth $10 million. While MilkRun has not confirmed the exact value of the deal, Woolworths has announced that it will rebrand its Metro60 app to MilkRun.

Previously, Woolworths’ Metro60 app guaranteed grocery deliveries within 60 minutes. With the rebranding, MilkRun will now be powered by Woolworths’ Metro. Notably, the delivery service will feature a flat $5 delivery fee and zero service fee. Additionally, Woolworths Everyday Rewards members will have the opportunity to earn Everyday Rewards points on their purchases.

MilkRun made the rebranding announcement on its Instagram page, expressing excitement about the relaunch: “MILKRUN is back in the game, now powered by Woolworths Metro. That means you get a selection of over 10,000 groceries, numerous deals, and an average delivery time of 33 minutes thanks to our delivery partners… Feels good to be back.”

Founder Danny Milham expressed his satisfaction with the continuation of the MilkRun brand under Woolworths’ ownership. In an interview with Forbes Australia, Milham stated, “MILKRUN pioneered rapid grocery delivery in Australia, and I’m pleased to see the brand continue in Woolworths’ hands.”

Woolworths CEO Brad Banducci also commented on the acquisition, highlighting the supermarket giant’s admiration for MilkRun’s brand and its aim to disrupt the grocery delivery model. Banducci confirmed that orders would be fulfilled using Woolworths’ network of Metro stores, providing customers with a selection of over 10,000 product lines.

Banducci expressed his enthusiasm for the relaunch, stating, “We are thrilled that the MILKRUN story will continue to live on and thrive with Metro60 relaunching as MILKRUN now powered by Metro.”

Orders will be fulfilled using the current model employed by Metro60, which relies on third-party couriers to deliver groceries within an average of 33 minutes.

This acquisition comes just a little over a month after MilkRun faced financial difficulties and ceased operations on April 14th, resulting in the redundancy of all 400 staff members.

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