Australian start-up Milkrun has been saved by former rival Woolworths, relaunching with the supermarket giant’s Metro60 service.
Milkrun took on the grocery industry by offering “instant” delivery of everyday essentials at reasonable prices but collapsed last month after it failed to secure more funding from investors.
Although Milkrun met the same fate as other venture capitals like Voly and Send, they have been credited with pushing larger competitors to enact on their own super-fast delivery times such as Woolworths, which launched its Metro60 service last year.
Founder Dany Milham confirmed Milkrun had been acquired by the Woolworths Group in a brief statement.
“Milkrun pioneered rapid grocery delivery in Australia, and I’m pleased to see the brand continue in Woolworths hands,” he said.
Woolworths’ Metro60 app has now relaunched as “Milkrun now powered by Metro” with the start-up’s distinctive blue and white branding.
“We’ve long admired Milkrun’s innovative brand, dedication to customers and ambition to shake up the grocery delivery model,” Woolworths Group CEO Brad Banducci said in a statement.
“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 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.”
The rebranded platform will offer $5 delivery in under 33 minutes and no service fee. Everyday Rewards members will also be able to collect points with every purchase.
Milkrun was launched in January 2022 and was designed to take on major Supermarket players like Coles and Woolworths in the competitive grocery delivery industry.
The start-up attempted to achieve delivery in under 10 minutes by establishing “hubs” in inner suburbs around Sydney and Melbourne which stocked popular every day items.
However, within months of launching Milkrun suffered from low customer satisfaction and complaints.
Customer backlash grew so intense that Mr Milham made a “public apology” on behalf of the company.
At the time, Milkrun had expanded to 50 suburbs in Sydney and 26 in Melbourne after raising more than $86 million in capital.
The company earlier announced it was laying off more than 20 per cent of its workforce in February due to challenging economic conditions.