Woolworths buys collapsed delivery service Milkrun

Grocery delivery service Milkrun has been resurrected as a part of Woolworths after the grocery store large acquired the model.

The start-up was launched in September 2021 through the top of the COVID-19 pandemic and provided tremendous quick grocery supply throughout Sydney CBD and Melbourne.

But in April it abruptly shut up store as a result of worsening financial situations.

Grocery food and delivery service, MilkRun — Woolworths has acquired the model of grocery meals and supply service Milkrun. (Instagram/MilkRun)

The transfer resulted in all its 400 workers in Sydney and Melbourne being made redundant.

Now Woolworths has confirmed it can relaunch its present Metro60 service with Milkrun’s blue branding, title and buyer checklist from immediately.

Milkrun founder Dany Milham and Woolworths haven’t revealed the worth of the deal, however the Australian Financial Review experiences sources stated it was price about $10 million.

Woolworths chief govt Brad Banducci stated his firm had lengthy revered the Milkrun model and its ambition to overtake the grocery supply sector.

“We’ve long admired Milkrun”s innovative brand, dedication to customers and ambition to shake up the grocery delivery model,” he stated.

“We are thrilled that the Milkrun story will continue to live on and thrive with Metro60 relaunching as Milkrun now powered by Metro.”

The present performance of the Woolworths app will stay the identical.

The deal additionally offers entry to Milkrun’s title, social media accounts and current buyer relationships.

Milkrun founder Dany Milham stated he was happy to see the model proceed as a part of Woolworths. (Josh Robenstone)

Woolworths stated orders will likely be fulfilled from its community of Metro shops which is able to give clients the selection of greater than 10,000 product strains.

“Milkrun pioneered rapid grocery delivery in Australia, and I’m pleased to see the brand continue in Woolworths hands,” Milham stated.

Milkrun was one of many first Aussie start-ups to ship groceries and alcohol superfast, promising it at your door in underneath 20 minutes for metro-eligible areas.

The firm noticed an enormous enterprise capital elevating of greater than $75 million after its launch when the ultrafast supply mannequin caught the attention of billionaire Atlassian founders Mike Cannon Brookes and Scott Farquhar and a plethora of native companies.

But main as much as its closure in April, the corporate struggled with Australia’s financial downturn as inflation result in skyrocketing grocery costs and the service needed to sustain with costs.