Woolworths acquires Milkrun, rebrands Metro60

Woolworths Group has acquired grocery delivery startup Milkrun following its collapse last month.

The retailer’s Metro60 brand will be renamed Milkrun and extend its operations to more than 500 suburbs across Sydney, Melbourne, Brisbane, Canberra and the Gold Coast.

Customer orders will be fulfilled from Woolworths’ network of Metro stores using third-party couriers with an average delivery time of 33 minutes.

Woolworths will also charge a flat $5 delivery fee and zero service fee while Everyday Rewards members can collect points with every purchase.

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.

“The Milkrun story will continue to live on and thrive with Metro60 relaunching as Milkrun now powered by Metro.”

Milkrun founder Dany Milham said he is “pleased” with the acquisition and added Milkrun has “pioneered” rapid grocery delivery in Australia.

Although the value of the deal is unknown, the Australian Financial Review reported that it could be worth about $10 million.

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