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Supermarket giant Woolworths (ASX: WOW) has acquired the defunct MILKRUN brand and will relaunch its rapid deliveries platform Metro60 with the name ‘MILKRUN powered by Metro’ less than two months after the Sydney-based startup collapsed.
Founded by Dany Milham in 2021, MILKRUN was a rapid delivery service that promised customers would receive orders in 10 minutes. But the venture shut down in April having raised more than $85 million from investors like AirTree, Grok Ventures and more.
Its demise meant more than 400 people were made redundant, with Milham attributing the company’s end to the slowing economy.
The Woolworths deal will see the brand name revived to head up Woolies’ Metro60 app which will remain exactly the same.
Unlike MILKRUN, which targeted a delivery timeframe of 10 minutes, Metro60 achieves an average delivery time of 33 minutes according to Woolworths, giving customers rapid access to over 10,000 product lines like hot roast chickens, fresh sushi and more.
MILKRUN founder Dany Milham said he was pleased that Woolworths would inherit the brand’s legacy.
“MILKRUN pioneered rapid grocery delivery in Australia, and I’m pleased to see the brand continue in Woolworths hands,” Milham said.
Woolworths Group CEO Brad Banducci said he was ‘thrilled’ about the deal.
“We’ve long admired MILKRUN’s innovative brand, dedication to customers and ambition to shake up the grocery delivery model,” Banducci said.
“We are thrilled that the MILKRUN story will continue to live on and thrive with Metro60 relaunching as MILKRUN now powered by Metro.”
By heading up Woolworth’s rapid deliveries app, more Australians will get access to the MILKRUN brand. Prior to its demise, MILKRUN was operational in Sydney and Melbourne, whereas Metro60 is available in more than 500 suburbs across Sydney, Melbourne, Brisbane, Canberra and the Gold Coast.
The platform uses third-party couriers to deliver goods with a flat $5 delivery fee and no service fee.
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