Grocery delivery start-up Milkrun, which collapsed in April less than two years after it began and had raised $86 million in venture capital backing, has been acquired by Woolworths. Media reports estimate the deal to be worth around $10 million.
Woolworths’ existing rapid delivery service Metro60 will be rebranded Milkrun but will keep its existing operating system and functionality, which uses third party couriers and achieves an average delivery time of 33 minutes.
The deal includes Milkrun’s name, social media accounts, and its existing customers.
Woolworths Group CEO Brad Banducci said: “We’ve long admired Milkrun’s innovative brand, dedication to customers and ambition to shake up the grocery delivery model.
“We are thrilled that the Milkrun story will continue to live on and thrive with Metro60 relaunching as Milkrun now powered by Metro.”
The network of Metro stores can offer more than 10,000 product lines including hot roast chickens, fresh sushi and more, Banducci said.
Woolworth’s charges a flat $5 delivery fee, but is offering new customers three free orders. Everyday Rewards members can all earn points with each order.
Milkrun now powered by Metro will be available in more than 500 suburbs across Sydney, Newcastle, Canberra, Brisbane, the Gold Coast and Melbourne.
