Woolworths has bought recently collapsed fast delivery grocery service Milkrun, in a deal believed to be worth around $10 million.

Woolies will rebrand its Metro60 quick-delivery service as Milkrun, and operate it out of its supermarkets using third-party workers to make deliveries.

It will be available in over 500 suburbs across Sydney, Melbourne, Brisbane, Canberra, and the Gold Coast, and will charge a flat $5 delivery fee, with an average time of 33 minutes per order.

“Milkrun pioneered rapid grocery deliver in Australia, and I’m pleased to see the brand continue in Woolworths’ hands,” Milkrun’s founder Dany Milham said of the deal.

“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.

“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.”