Milkrun is back from the dead after Woolworths brand acquisition

Less than two months after its collapse, ‘instant’ grocery delivery app Milkrun is back, or at least the name is, with the brand being purchased by Woolworths. The grocery giant’s Metro60 service will now be rebranded to ‘Milkrun powered by Metro.’

Woolworths has declined to comment on how much it paid for the Milkrun brand.

“The cat is well and truly out of the bag. Milkrun is back in the game and now powered by Woolies,” the startup announced in an Instagram post on Thursday morning.

“That means you now get a 10,000+ range, tons of deals and delivery in minutes thanks to our delivery partners. Download the brand new, shiny Milkrun app and let’s get this grocery delivery party restarted. Feels good to be back.”

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Milkrun powered by Metro is born

Metro60 was a competitor to Milkrun, offering delivery in under 60 minutes. Now it has rebranded to ‘Milkrun powered by Metro’.

“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,” Woolworths Group CEO, Brad Banducci, said in an email.

“Orders will be fulfilled from our network of Metro stores which will give customers the choice of over 10,000 product lines including hot roast chickens, fresh sushi and much more.”

According to the new website, little will change for Metro60 customers other than the branding. But it does mean more people than ever will now have access to ‘Milkrun’.

While it previously only operated in select inner-city suburbs in Melbourne and Sydney, the acquisition means customers across 500+ suburbs across Sydney, Melbourne, Brisbane, Gold Coast, Canberra and Newcastle will be able to utilise the new service.

But for those who were used to the lighting-fast Milkrun delivery, you’re probably not going to see groceries in under 10-15 minutes. Instead, it will be under 60, but with an overall average of 33-minute delivery times.

“So what does that mean for existing Metro60 customers? Everything you loved about Metro60 will remain unchanged (except the name and a new colour scheme),” the website reads.

“You’ll still be able to enjoy super fast delivery of a 10,000+ range of grocery items, thousands of weekly specials, no service fee, a flat $5 delivery fee and an average delivery time of a cool 33 minutes,” 

The app reveals that this $5 fee will be waived on customers’ first three orders.

Screenshots of the new Milkrun app. Image: Tegan Jones

Users will also be able to link their Everyday Rewards Card in the new Milkrun app to collect 1 Everyday Reward point for every $1 spent.

Mr Yum co-founder and CEO in a LinkedIn post. Source: LinkedIn.

No more salaried delivery riders

Milkrun was the last of the instant grocery apps to close its doors, following the likes of Voly and SEND. The continued economic climate and the rising cost of living mean shoppers are more frugal than ever and less likely to splash out on delivery services and the premiums attached.

But it was an expensive venture, particularly as it didn’t engage in the gig economy, instead hiring salaried employees as its riders.

This business model died when Milkrun was dissolved. Metro60 mostly utilises Uber drivers to fulfil its deliveries, and SmartCompany can confirm this will continue with its rebrand to ‘Milkrun powered by Metro’.

A run of closures

Milkrun was also just one of several food-related businesses to shutter in recent months, with Providoor and CoLab quickly following.

Similar to Milkrun, Voly was also offered a lifeline back in February by online butcher startup, Our Cow, which has transformed it into an online farmers’ market. CoLab was also acquired by eFoodz.

Prior to this, the company was one of the darlings of the Australian startup space, landing $88 million in total capital within a few months of opening.

However, after rumours of financial issues and several rounds of redundancies, it closed its doors in April.

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