Milkrun NZ launch: Woolworths launches service delivering groceries within an hour

New grocery delivery app Milkrun launches this morning with a 60-minute door-to-door promise. Photo / Supplied

A new grocery delivery platform will launch today and promises to have everything from fresh flowers, hot chickens, sushi and cold milk to your door within an hour.

Woolworths NZ is launching the disruptive delivery platform Milkrun, which it says will deliver to your door faster than any other grocery service.

The delivery, at under one hour, is faster than normal supermarket delivery services which are typically next day.

Mark Wolfenden, from Woolworths NZ, told the Herald Milkrun was extremely popular in Australia and he believed it would be a success here.

“It will be the first of many new innovations to give Kiwis a faster, more convenient, and more efficient way to shop,” he said.

“We have been running a friends and family trial and it has gone very well, with many delivers significantly better than the 60-minute promise.”

Many trial orders have reached customers in under 40 minutes.

Wolfenden said customers who received their order in 60-89 minutes would receive a $5 voucher for their next order and on the rare occasion the order was received in 90 minutes they would receive a $10 voucher for the next order.

The app-based platform has access to more than 10,000 grocery items with a flat rate $7 delivery fee.

The first three deliveries are free.

The launch is the first big move since it was announced last week supermarket Countdown would rebrand back to Woolworths next year.

“It is the first of many new exciting innovations New Zealanders will see in the coming years,” Wolfenden said.

Woolworths’ $400 million investment in New Zealand includes upgrading older stores, introducing new digital technology and a complete rebranding from Countdown to Woolworths.

Wolfenden said today’s launch of Milkrun would start in central Auckland and Wellington and expand to include more suburbs and cities in the coming months.

“It is running well in more than 500 suburbs in Australia so we are really excited for it to make the jump over here as well.”

“We are starting off in central Auckland and 70 per cent of Wellington but have plans to expand to more suburbs soon after.”

Deals on Milkrun will be different to in-store prices and delivery comes with a $7 flat fee. Image / Supplied

The Auckland area includes households inside the boundary of Herne Bay, Ponsonby, Parnell, Eden Terrace and Point Chevalier.

Christchurch, Dunedin and the North Shore in Auckland are also in the expansion plan.

Groceries would be delivered by rideshare drivers such as those used by Ubereats and DoorDash.

“We are using rideshare partners so we can meet expectations and deliver within the one-hour promise,” Wolfenden said.

The products are picked and packed by Countdown supermarket team members in-store.

Orders on Milkrun need to reach a $20 minimum and cannot be linked with the current loyalty card.

There were plans for a new loyalty system in the future, Wolfenden said.

Milkrun was launched in Australia in 2022 by entrepreneur Dany Milham but ceased trading in April 2023 and 400 staff were made redundant.

The initial Milkrun platform delivered groceries by electric scooter and promised to have them to the door in 10 minutes.

Milham cited high overheads as part of the struggle leading to Milkrun’s demise.

Unlike platforms like Uber Eats or DoorDash, Milkrun recruited delivery riders as employees and paid them wages, holiday pay, and superannuation.

Woolworths bought the failed business and merged it with its own fast delivery service Metro60 but kept the Milkrun name.

The new Woolworths-owned Milkrun delivers to more than 500 households and businesses in Sydney, Melbourne, Brisbane, Gold Coast, Canberra and Newcastle, Australia.

If a Milkrun delivery runs over the 60 minutes promised, a voucher is issued for the next order. Image / Supplied

In a statement to Australian media after the sale Milham said MilkRun had “pioneered rapid grocery delivery in Australia” and he was pleased to see the brand continue in Woolworths ownership.

Milkrun is available to download on Apple’s App Store and Google Play.

Kirsty Wynn is an Auckland-based journalist with more than 20 years experience in New Zealand newsrooms. She has covered everything from crime and social issues to the property market and has a current focus on consumer affairs.