Last month Milkrun announced its sudden closure, with operations ceasing on April 14. But the fast grocery-delivery start-up has revealed its swift return, after being bought by Woolworths. The supermarket chain’s delivery app Metro60 has just relaunched under a new name, “Milkrun now powered by Metro”.
Milkrun’s closure followed that of its competitors Voly and Send, which both shut down in 2022. In an email sent to staff last month, the company’s founder and CEO, Dany Milham, cited deteriorating economic conditions as the cause. Milham opted to close the business while it was still able to pay suppliers and offer severance packages to all 400 members of staff.
Milham will not be joining Woolworths as part of the acquisition, and the new version of Milkrun will be employing gig workers as part of Woolworths' deal with Uber, rather than its former salaried drivers – which was a big point of difference for Milkrun, if not its customers.
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With orders now being fulfilled by Woolworths’ range of Metro stores, the new Milkrun promises customers the choice of more than 10,000 products, including fresh sushi and hot roast chickens. While the former service only delivered to select suburbs in Melbourne and Sydney, the new iteration will be available in over 500 suburbs across both cities, as well as in Brisbane, Canberra, and the Gold Coast.
“We’ve long admired Milkrun’s innovative brand, dedication to customers and ambition to shake up the grocery delivery model,” Woolworths CEO Brad Banducci said in a statement. “We’re thrilled that the Milkrun story will continue to live on and thrive with Metro60 relaunching as Milkrun now powered by Metro.”
Following Metro60’s pre-existing business model, the functionality of the app will remain the same, with a flat $5 delivery fee and zero service fee on all orders. To celebrate the relaunch, however, the app is running a promotion for new customers, with no delivery fee for their first three orders. Everyday Rewards members can also link their card to the app and earn a point for every $1 spent.
Taking to its own Instagram on Thursday to break the news, the brand said: “Milkrun is back in the game, now powered by Woolworths Metro. That means you get a 10,000+ range of groceries, tons of deals and an average delivery time of 33 minutes thanks to our delivery partners. Download the brand new, shiny Milkrun app and let’s get this grocery delivery party restarted.”
The announcement was met with excitement from the brand’s followers.
“Praise be to the milk gods,” said one user. “What an acquisiton, well played,” read another comment.