Woolworths Group has acquired grocery delivery start-up Milkrun following its collapse last month and will rebrand Metro60 to reflect this new purchase.

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.”